Bahrain cabinet asks parliament to approve VAT amendment: state news agency

Government is considering doubling VAT to 10% to boost state revenues and reduce its budget deficit

  
Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

REUTERS/Hamad I Mohammed

DUBAI- Bahrain's government sent a draft bill to parliament for approval to amend the value-added tax rate, currently at 5%, from next January, the state-run Bahrain News Agency said on Monday.

BNA did not say whether the amendment referred to a hike or a cut in the rate.

But a parliamentary source and a source close to the government told Reuters on Sunday the government is considering doubling VAT to 10% to boost state revenues and reduce its budget deficit.

(Reporting by Lisa Barrington and Yousef Saba) ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))


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