Bahrain’s government has officially sent a draft proposal to parliament for approval to amend value-added tax beginning on Jan. 1, 2022, according to the Bahrain News Agency.
In a report regarding the cabinet’s meeting on Monday, the Bahrain News Agency said that the government had approved taking constitutional and legal measures to refer a draft law amending some provisions of the value-added law to the legislative authority, which includes amending the value-added ratio starting Jan. 1, 2022.
The report did not specify whether it would hike or reduce to the VAT, currently at 5 percent.
Several local reports on Sunday said Bahrain is considering doubling value added tax to 10 percent to boost state revenues and reduce its budget deficit.
A Bahraini parliamentary source and a source close to the government spoke to Reuters confirming local media reports on the 10 percent hike.