Bahrain increases VAT from 5%to 10% effective January 1, 2022.

Bahrain’s Council of Representatives has approved the double VAT increase from 5% to 10% effective 1st January 2022. The draft bill is reportedly referred to the legislative branch (Parliament) within the coming days for review. It seeks to stabilize the Fiscal Balance Programme which was impacted by COVID-19.

“The Kingdom is emerging from the pandemic with reasons to be highly optimistic and the plan announced today aims to turbocharge the recovery,” Bahraini Finance and Economy Minister Sheikh Salman bin Khalifa Al Khalifa said in the statement.

Bahrain is the smallest country within the six-member GCC economic bloc (Saudi Arabia, UAE, Oman, Qatar and Kuwait are the remainder). The National Bureau for Revenue (NBR) of Bahrain is yet to make an official announcement.

Source: saudigazette.com

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