BNA (Bahrain’s News Agency) reported that Bahrain’s upper house gave final approval to a draft law on Monday that will see value-added tax (VAT) imposed for the first time.
The lower House of Representatives approved the bill on Sunday after a royal decree ordered parliament to hold an extraordinary session.
Article III of the decree law states that the relevant Regulations will be issued after 15 days from approval, and to go into effect on the 1st of January 2019.
The decree of law is aligned with the commitment of the Kingdom of Bahrain to the Unified Agreement for Value Added Tax (VAT) of the Cooperation Council for the Arab States of the Gulf.
The justification for VAT’s issuance is that it aims at achieving economic objectives through closer cooperation between the countries within the GCC and developing the foundations of collective action among the countries to meet the aspirations of the region’s leaders in achieving the desired GCC integration and Economic development.