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))