Bahrain will introduce VAT before the end of this year, the finance minister announced.
Speaking at an investment conference in Manama, Sheikh Ahmed bin Mohammed Al Khalifa said the delayed introduction of VAT.
"We'll be working with parliament on VAT and aim to have everything set up by the end of 2018," Sheikh Ahmed told the conference, according to Reuters.
Bahrain, along with Kuwait and Oman, were due to introduce VAT at the same time as Saudi Arabia and the UAE. However, all three 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.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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