VAT hike essential to achieve financial balance: Al Awadhi

VAT hike essential to achieve financial balance: Al Awadhi

In light of the esteemed government’s efforts to achieve financial balance by the end of 2024, curb the exacerbation of public debt, and diversify sources of national income, businessman Yaqoob Al Awadhi said that increasing the value-added tax “VAT” to 10% beginning in the new year seems understandable. However, he emphasized his expectation that this rise will be temporary, with a return to the 5% rate or permanent abolition of the tax if the goals of those efforts are met. Al Awadhi pointed out that announcing an approximate end date for this increase, even if it is in two or three years, or confirming that there will be no further increases in the future, would reassure markets and investors and encourage them to find solutions to adapt to the current situation, ensuring their survival in the market at the very least. Many indicators, he noted, point to optimism about the national economy’s recovery, including the rise in oil prices, the announcement of the economic recovery plan and subsidiary plans related to the development of the financial and logistical sectors, Bahrain’s tourism strategy, and others, all of which could reduce the need for this tax. Al Awadhi stated that imposing taxes