The Finance Minister, Member-in-Charge of the Bill also tabled the Renewable Energy Tax Exemption Bill of Bhutan 2026 following the presentation of the Annual Budget Report for the FY 2026–2027 and the Supplementary Budget Appropriation Bill for the FY 2024–2025. The Bill was seconded by the Member from Lamgong-Wangchang constituency.

During the Second Reading, the Finance Minister outlined that the Bill seeks to promote investment in Bhutan’s renewable energy sector by providing targeted, time-bound, and conditional tax exemptions on indirect taxes such as customs duty, excise tax, and GST for approved renewable energy projects. The Bill aims to support Bhutan’s goal of achieving 25 gigawatts of renewable energy capacity by addressing high upfront costs and financial risks associated with such projects.

The Bill establishes a clear approval process, eligibility criteria, compliance requirements, and safeguards to prevent misuse of tax benefits, including monitoring, audit, and enforcement provisions.

The House referred the Bill to the Economic and Finance Committee for review, with the report to be presented on 3 June 2026 for the Third Reading.