A Thimphu doma “pan” shop owner’s struggle to survive

2026-03-23 - 08:51

In the quiet corners of Thimphu’s buildings, humble doma (betel leaf with areca nut and lime paste) shops, also known as “pan” shops, are facing a harsh reality. For owners like Karma, soaring rents and the introduction of GST are turning small-scale entrepreneurship into a daily struggle, forcing some to consider closing their doors or seeking opportunities abroad. Karma runs a modest pan shop tucked inside one of the city’s buildings. These shops serve as local pit stops, offering domas, cigarettes, pan masalas, and a small selection of snacks. “As a small shop, the only customers we get are those who buy items such as cigarettes, pan masalas, and domas. Now, due to GST and rising expenses, people buy these items in smaller quantities,” he said. He pointed out, “People no longer buy cigarettes in packets, only in pieces. They also ask why there are only five or six pieces of doma now, when previously shops sold eight or nine.” Karma explained that the changes are a result of GST enforcement. All items purchased from retailers and wholesalers, including imported domas from India, are now taxed. “As a business, we need to make some gains from what we sell. We have no choice but to adjust prices and quantities,” he said. Even then, small shop owners face a dilemma. Raising prices risks losing customers, while keeping prices the same cuts into already thin profit margins. “It is very difficult for small shops like ours to make a stable living. On top of that, the government introduces policies such as GST, which don’t take into account the challenges faced by low-income earners or small businesses,” Karma said. He added that household expenses, rent, school shopping, and loan repayments continue alongside running the shop, making financial stability almost impossible. Karma also highlighted that GST is now applied even on house rent. “We have to arrange rent by the 19th or 20th of the month, and any delay results in additional charges from landlords,” he said. Many small shop owners share Karma’s struggles. “Other owners have considered cancelling their licenses and shutting down,” he said. Karma too is thinking of moving abroad, citing countries like Australia as offering better opportunities for a decent living. “We would be happy to pay taxes to support the country, but there is little consideration for how policies affect small businesses and middle-income earners,” he said. “During elections, political parties make promises to support businesses and livelihoods. In reality, there is little follow-through,” he added. Karma concluded, “For now, I just want to sell my existing stock, settle my small loans, cancel my license, and either rest or move to another country.”