Bahrain VAT launch set back

Sun 5th Nov 2017

A key parliamentary committee, Financial and Economic Affairs Committee, in Bahrain has rejected latest tax reform proposals, including plans to introduce VAT.

The rejected Bill included launching VAT in accordance with Bahrain’s sign-up to the Gulf Cooperation Council’s (GCC) Agreement on VAT.  The House of Representative committee vetoed it on the grounds that it contains sweeping powers on tax raising on harmful goods.  The Bahraini House will now vote on the committee’s decision.

Bahrain is one of the six GCC countries originally planning to launch VAT in 2018.  Today, only Saudi Arabia and UAE are confirmed to implement the consumption tax from January 2018. The others – Bahrain, Qatar, Oman and Kuwait – may delay into 2019.



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