Bahrain to introduce VAT by year-end, says finance minister
Bahrain is expecting to introduce Value Added Tax (VAT) by the end of 2018, the finance minister announced
Bahrain is expecting to introduce Value Added Tax (VAT) by the end of 2018, the finance minister announced.
"We'll be working with parliament on VAT and aim to have everything set up by the end of 2018," said Sheikh Ahmed bin Mohammed Al Khalifa at an investment conference in Manama, according to Reuters.
Bahrain, along with Kuwait and Oman, were due to introduce VAT at the same time as Saudi Arabia and the UAE, but delayed the implementation of the new tax until 2019.
BMI Research released earlier this year said the introduction of VAT in the kingdom is unlikely to have the same fiscal benefits as the UAE and Saudi Arabia due elevated government spending.
“Elevated spending, in a bid to limit social instability, will severely constrain improvements in Bahrain's fiscal position, even as VAT is introduced,” the report said.
Sheikh Ahmed added that Bahrain will introduce further cuts to subsidies on fuel, food and services.