Bahrain could double value added tax – sources

Economy48 minutes ago (Sep 26, 2021 09:20AM ET)

(C) Reuters. FILE PHOTO: General view of Bahrain World Trade Center is seen during early evening hours in Manama, Bahrain, May 2, 2020. Picture taken May 2, 2020. REUTERS/Hamad I Mohammed

DUBAI (Reuters) – Bahrain is considering doubling value added tax to 10% to boost state revenues and reduce its budget deficit, a Bahraini parliamentary source and a source close to the government told Reuters, confirming local media reports.

The government’s communications office did not immediately respond to a request for comment.

Bahrain’s economy contracted by 5.4% last year, the International Monetary Fund has said, as the pandemic hurt vital sectors such as energy and tourism.

The small Gulf state has accumulated a large pile of debt since the 2014-2015 oil price shock. In 2018 it received a $10 billion financial aid programme from Gulf allies that helped it avoid a credit crunch.

Amending the law on 5% VAT, which Bahrain introduced in 2019 as part of plans to fix its finances and increase non-oil revenues, is being discussed between the government and parliament, the parliamentary source said.

Parliament must approve such a change in the law, the source added, saying the government was trying to find ways to protect people with low incomes should the change be made.

Other solutions to boost state finances were also being considered, the source added.

Bloomberg reported on Sunday, citing an unnamed official close to the government, that Bahrain will double VAT.

Bahrain could double value added tax – sources

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

More than 1,400 firms went bust last month in England and Wales

The number of businesses going bust in England and Wales jumped last month to its highest level since the start of the pandemic, as...

China launches second crewed mission to build space station

World59 minutes ago (Oct 15, 2021 11:06PM ET) 4/4 (C) Reuters. The Long March-2F Y13 rocket, carrying the Shenzhou-13 spacecraft and three astronauts in China's second...

U.S. offers payments, relocation to family of Afghans killed in botched drone attack

World22 minutes ago (Oct 15, 2021 09:55PM ET) (C) Reuters. FILE PHOTO: The Pentagon logo is seen behind the podium in the briefing room at...

Subscribe here

Latest Posts