Bahrain to approve VAT launch Nov 2018
- Sep 27, 2018 | Richard Asquith
Bahrain is scheduled to approve the implementation of a 5% VAT in November, in time for an early 2019 launch.
The government is looking to pass through parliament the legislation to introduce the consumption tax, along with other fiscal reforms including a pension overhaul. The measures are to help reduce the state deficit, which has risen sharply following the fall in oil prices over the past four years, and prop-up the dinar currency which is at an all-time low.
Bahrain and the five other members of the Gulf Cooperation Committee agreed to introduce a VAT union in 2017. However, only Saudi Arabia and the UAE went ahead this year as planned.