Bahrain FM signs agreement for GCC's unified VAT
The finance minister stressed that the unified VAT and selective tax agreements are "not income taxes", with VAT revenues excluded from the kingdom's 2018 budget
Bahrain's Minister of Finance, Shaikh Ahmed bin Mohamed Al Khalifa, signed the GCC's unified value-added tax (VAT) and selective taxation agreements.
This move follows the GCC's decision to simultaneously implement VAT in 2018.
Al Khalifa said Bahrain would apply the conventions of the agreement after the completion of all the constitutional and legal procedures, and after the issuance of the necessary legislation.
He stressed that the GCC’s unified VAT and selective taxation agreements "are not income taxes, will be applied to goods and services at a rate of 5%, and will not include basic food items, medicines, and medical supplies", according to BNA.
Later, Bahrain's Information Affairs Minister Ali bin Mohammed Al-Romaihi said the VAT tax's revenues are not included in the country's 2018 state budget, "because there is no law to support it and... consultations are being held under the current financial situation to reach a budget capable of promoting [the] national economy".
The tax is expected to take force mid-2018, Al-Romaihi added.