Bahrain likely to double VAT to 10%

Bahrain likely to double VAT to 10%

Bahrain likely to double VAT to 10%

Bahrain is likely to double value-added tax to 10 percent in an effort to boost revenues as the economy begins to recover from the pandemic, according to an official close to the government.

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According to a report published in a section of the Bahraini press, the legislators also discussed the options of reducing wages or social welfare given to nationals to bolster the economy.

According to IMF estimates, Bahrain’s budget deficit will contract by half this year after lower oil prices and the coronavirus pandemic boosted it to a record 18 percent of economic output in 2020.