Off the wire
• (Recast)LME base metals close lower mostly on Tuesday  • Three men accused of gang rape in southern Finland  • Obama proposes 4.1 trillion USD spending plan in final White House budget  • UN chief calls for shared responsibility amid mounting global challenges  • IT industry earns 2.5 bln USD for Ukrainian economy in 2015: official  • Spanish stock market falls 2.39 pct, closes at 7,927 points  • Feature: Paintings by celebrated Pre-Raphaelite painters on show in Liverpool  • Kenya to scale up investments in biomedical research  • No case of Zika virus in Kenya: scientist  • Israel plans to encircle itself with security fences  
You are here: 　 Home

Bahrain imposes selective tax on cigarettes as part of austerity measures

Xinhua, February 10, 2016 Adjust font size:

Bahrain has increased import duty on tobacco products from 100 per cent to 200 per cent following a decision to readjust the tariffs, the country's Industry, Commerce and Tourism Ministry said on Tuesday.

It stated the move is part of measures taken by government to boost state revenues and revitalise the financial standing amid budget deficit resulting from plummeting oil prices in international markets.

The price of a cigarette pack was increased from around 2.6 U.S. dollars to 3.1 dollars effective from Tuesday at all retail outlets.

"The prices of U.S. tobacco products would remain unchanged after the import duty exemption took effect on January 1, 2016, under the Free Trade Agreement (FTA) binding the Kingdom of Bahrain and the United States of America." stated the Ministry.

It said the new levy is deemed special and does not thus constitute a customs tax, nor does it contravene Bahrain's legal or trade obligations with other countries, relevant regional and international organisations, specially the Gulf Cooperation Council (GCC) and the World Trade Organisation (WTO).

It urged people to report cases of consumer complaints if shop keepers over charge them.

According to a report in the Gulf Daily News on Tuesday, import duty on alcoholic beverages has also been increased from 125 percent to 225 percent.

Bahrain's budget for 2015 and 2016 has been increased from BD3 billion to BD5 billion as result of low oil revenues prompting series of austerity measures by the government.

Electricity and water rates will increased from March 1 for all expatriates, industrial and private sector, while fuel prices were increased last month and meat subsidies were lifted last year. Endit