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Bahrain’s government sent a draft bill to parliament for approval to amend the value-added tax rate, currently at five per cent, from next January, the state-run Bahrain News Agency said today.
Reuters reported the 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 yesterday the government is considering doubling VAT to ten per cent to boost state revenues and reduce its budget deficit.
Bahrain introduced its new VAT system on 1 January 2019 in an effort to tackle its deficit.
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