Government cannot increase VAT without legislative approval, says minister

Bahrain's government cannot increase VAT without legislative approval, a top MP revealed early this morning.

Parliament financial and economic affairs committee chairman Ahmed Al Salloom said after receiving legal consultation that Bahrain's government faces legislative restrictions stated in the law associated with the original move to introduce for Value-Added Tax in October 2018.

VAT of five per cent was introduced in Bahrain on January 1, 2019 with 94 commodities being exempt.

Mr Al Salloom comforted residents and citizens that Bahrain wouldn't follow Saudi Arabia which increased VAT from 5pc to 15pc from July.

"The legislative mechanism is completely different between Bahrain and Saudi Arabia," said Mr Al Salloom, who is also board member of the Bahrain Chamber for Commerce and Industry.

"For any amendment to the introduction and implementation law this requires legislative consent through law from Parliament and the Shura Council."

Five MPs led by Mr Al Salloom also submitted an urgent proposal to exempt companies, firms and financial institutions from VAT for three months to help offset the impact of Covid-19.

 

Source: http://www.gdnonline.com/Details/822711/Government-cannot-increase-VAT-without-legislative-approval,-says-minister

 

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