VAT refund makes gold hot favourite for Bahrain tourists

VAT refund makes gold hot favourite for Bahrain tourists

The record arrivals of tourists in Bahrain is also offering an unexpected boost to the gold and jewellery sector, it has emerged. Sources say a large number of tourists are taking an interest to shop for gold and jewellery items owing to the VAT refund, which is giving them additional purchasing power compared to citizens and expatriates. Apart from tourists, the refund option is also available to non-residents as well as citizens residing abroad.

Speaking to The Daily Tribune, a senior manager with one of the leading jewellery houses in Bahrain, said, of late, many tourists, especially from South Asian and Arab countries, seem to be taking extra interest in buying gold and jewellery. “The VAT refund scheme is definitely an attraction and a support to the sector,” he added. Two months ago, The Daily Tribune reported a decline in the gold and jewellery sales, owing to an increase in VAT from five per cent to 10pc since the beginning of the New Year. Gold retailers then expressed hope that the sales would catch up in the next few months as consumer spending was expected to increase in the post-pandemic economic recovery period.

Those tourists who seek a VAT refund must present