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RIYADH: Bahrain’s parliament on Wednesday approved plans to increase value-added tax to 10 percent from the current 5 percent, according to Reuters.
The Cabinet referred last September a draft law to the parliament, to decide on increasing VAT starting Jan. 1, 2022.
The legislators discussed earlier this year the options of reducing wages or social welfare given to the nationals to bolster the economy.
According to IMF estimates, Bahrain’s budget deficit will contract by half this year due to lower oil prices and the coronavirus disease pandemic boosted it to a record 18 percent of the economic output in 2020.