Bahrain Finance Minister: Preparations for VAT in place by end of 2018
Manama: Bahrain will be all systems go for implementation of value added tax (VAT) before the end of the year, Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa has said.
Shaikh Ahmed told the GCC Financial Forum 2018 at the Four Seasons Hotel Bahrain Bay this morning that the ministry and other agencies of the government are working with a private consultant to finalise legislation, systems and processes needed to roll out the consumption tax.
"This is part of the joint commitment to the GCC states and in line with the unified agreement."
The minister said he was confident the implementation would be smooth, citing the case of the selective tax on cigarettes, high-sugar fizzy drinks and energy drinks that was implemented last December.
Bahrain is also expected to return to bond markets this year to help finance its budget deficit, which is estimated by the International Monetary Fund at about 12 per cent of gross domestic product this year.
The kingdom also plans to continue the longstanding diversification of the economy by increasing non-oil revenues, redirecting subsidies to Bahraini citizens, and reducing recurrent expenditure by restructuring government departments, added Shaikh Ahmed.
