The Deputy Chairperson of the Economic and Finance Committee,Member from Gangzur-Minjey Constituency presented the Renewable Energy Tax Exemption Bill of Bhutan 2026 for its Third Reading today.

The Bill aims to promote investment in renewable energy projects by providing targeted and time-bound tax exemptions on eligible renewable energy activities. It seeks to reduce project development costs, improve tariff competitiveness, accelerate the development of renewable energy infrastructure, and strengthen Bhutan’s long-term energy security.

During the deliberation, the House reviewed the objectives and scope of the Bill, including exemptions from indirect taxes on direct inputs used for the construction, installation, and establishment of approved renewable energy activities, as well as exemptions on Property Ownership Transfer Tax where applicable. The Bill covers a broad range of renewable energy activities, including hydropower, solar, wind, biomass, geothermal energy, biofuels, green hydrogen, and other renewable energy sources approved by the relevant ministry.

The House also deliberated on provisions related to the approval process for renewable energy activities, eligibility criteria for tax exemptions, the responsibilities of the relevant ministries, and safeguards to ensure that exemptions are administered in a transparent, equitable, and fiscally prudent manner. The Bill further includes measures to prevent misuse and unintended revenue loss while supporting the development of renewable energy infrastructure.

The House endorsed the recommendations made by the Committee, including amendments to the Dzongkha text to ensure consistency and clarity. The Bill will be tabled for voting on 4 June 2026.