November 4, 2025
GELEPHU – With a revised alcohol taxation policy due to take effect in just two months, alcohol that was once readily available is now in short supply in the market, driving prices to record highs.
Since production and supply from manufacturers remain uninterrupted, the shortage is widely linked to potential hoarding ahead of the major tax change scheduled for January 1, 2026.
The shortages include popular beers like Druk 11000 and Druk Lager, which are manufactured by Bhutan Brewery Private Limited (BBPL) in Pasakha, as well as Ter, Misty Peak, and Black Mountain Whisky 180 ml, produced by the Army Welfare Project (AWP).
The BBPL continues to dispatch over 300,000 cartons of alcoholic beverages each month to 50 direct dealers nationwide, according to the factory. However, AWP-produced wines, which are currently running low in the market, are reported to be out of stock at the factory.
While prices at the manufacturing plant remain unchanged, a carton of canned beer that sold for Nu 1,380 a month ago in Gelephu now costs between Nu 1,550 and Nu 1,750. The factory price for a carton of canned beer is around Nu 1,350, and about Nu 700 for bottled beer.
A Nu 70 lager now cost Nu 85, with some restaurants charging up to Nu 100, according to customers. This means a 24-can carton can earn a profit of Nu 690 even when sold at Nu 85 per can, an increase of about 110 percent.
Sheela Rai, who runs Gelephu Wine Shop, sold 950 cartons of beer on October 30, shortly after the shipment arrived. “These usually last about two weeks. Beer is our best-selling product, but it now takes around two weeks to restock. We have heard we may not receive any in December,” she said.
Gelephu Wine and Liquor Shop has been out of stock of beer for the past three weeks. “I have not received any since October 12, despite ordering two jumbo truckloads,” said owner Prem Kumar.
According to Samdup Wine Shop, it has become increasingly difficult to source beer from the factory. “This is the first time we have experienced shortages. I have been receiving many inquiries from customers,” the owner said.
Karaoke bars and restaurants are also struggling to maintain sufficient stock. “My dealer now refuses to supply, and many say the middlemen are stockpiling inventory. Without alcohol, there are no customers,” said a karaoke owner in Tsirang.
Rustic Pub owner Sonam Tshering said that any new policies directly affect consumers, not dealers. “The price increase does not affect my profit, but ultimately it is the customers who bear the cost. We cannot stop them because products such as alcohol and tobacco are in high demand.”
Hoarding suspicions
Ahead of the new taxation policies, shopkeepers complain that distributors and dealers have begun hoarding to sell at higher prices next year. While distributors deny hoarding, frustrated customers are suspicious, with some even visiting their stores to check.
A retailer said that some distributors have started stockpiling. “They sell it in sets, which are more profitable than selling by the carton. A set of canned beers, which used to cost Nu 250, now costs between Nu 280 and Nu 320,” she added.
Residents also report stockpiling of tobacco and wine products such as Misty Peak and Special Courier whisky. “There are rumors that these products will be discontinued. Many have already started stockpiling and are not ready to sell them at the moment,” one resident said.
“Stockpiling tobacco could lead to losses, as it requires specific temperature conditions. If the tobacco is stockpiled for next year, it will be damaged,” he added.
Some dealers, however, revealed that their attempts to stockpile by requesting a large jumbo truckload, usually shipped in smaller jumbo trucks, were refused by the manufacturers.
Although the shortage is partly attributed to the annual peak season linked to Diwali and Dashain in September and October, manufacturing plants also suspect that hoarding is a contributing factor, which is causing supply disruptions and inflating prices.
Alcoholic beverages are distributed according to quotas set by the Department of Revenue and Customs (DRC), which are sufficient for Bhutanese consumers. Market trends can be monitored, as all beverages display their manufacturing dates.
The DRC implemented interim regulatory measures in July to prevent market disruption and hoarding of controlled goods such as alcohol, pan masala, and tobacco, with limited imports and sales allowed before the tax takes full effect.
Any alcoholic beverages produced in 2025 and sold in 2026 would indicate hoarding, even though they have a 12-month shelf life, according to manufacturers.
“Customers may lodge a complaint with the Competition and Consumer Affairs Authority if beers produced this year are sold at higher prices next year,” said a factory official.
“We have already informed our distributors not to stockpile and to ensure products are available at all times in their respective areas,” the official said. “We also discourage them from overcharging, as it is the customers who ultimately bear the cost.
New taxation policy
The government, following the adoption of the new Excise Tax Bill of Bhutan 2025, is implementing a new taxation framework for alcohol and tobacco products to discourage their consumption.
This major overhaul of the tax system is intended to address the rise in non-communicable diseases linked to alcohol, tobacco, doma, drugs, vapes, e-cigarettes, and pan masala products such as Supari , Shikhar , and Himgold .
Alcohol is subject to 100 percent customs duty and a 5 percent Goods and Services Tax, along with an excise tax of Nu 1,200 per litre of pure alcohol content, which replaces the current 200 percent sales tax.
For example, a 750 ml bottle of whisky with 42.8 percent alcohol currently costs Nu 325. The new excise tax of Nu 385 on its 321 ml of pure alcohol, taxed at Nu 1,200 per litre, will bring the total price to around Nu 643.
Tobacco products, including unstemmed tobacco, chewing tobacco, and cigarettes, are currently levied a 100 percent sales tax and 10 percent customs duty. Next year, they will be subject to a 10 percent customs duty, 5 percent GST, and an excise tax of Nu 10 per cigarette stick and Nu 40 per cigar stick.
Pan masala and supari products will continue to be taxed at 30 percent.