Following suit of nations like UAE and Saudi Arabia, Bahrain has decided to implement VAT by the end of this year as well.
Sheikh Ahmed bin Mohammed Al Khalifa said, “We’ll be working with parliament on VAT and aim to have everything set up by the end of 2018.”
Apart from implementing VAT, Bahrain will additionally introduce further cuts to subsidies on fuel, food and services as the report from BMI Research released earlier this year revealed that introduction of VAT in the kingdom is unlikely to have the same fiscal benefits as the UAE and Saudi Arabia due elevated government spending.
The report mentioned, “Elevated spending, in a bid to limit social instability, will severely constrain improvements in Bahrain’s fiscal position, even as VAT is introduced.”
After Bahrain, Kuwait and Oman also plan to implement VAT form 2019.
more recommended stories
Google launches new Arabic feature for Gulf job-seekers
Google has announced the launch of.
MidEast carriers see sharp fall in July passenger demand growth
Passenger demand growth registered by Middle.
Arab world must accelerate reforms, says World Economic Forum
The Arab world must accelerate progress.
UAE mobile phone sales market slumps in Q2
The GCC mobile phone market experienced.