Citizens Flock to Stores Days before VAT Increases
2021-12-30 - 9:57 p
Bahrain Mirror: Merchants and shopkeepers in Bahrain said that citizens intensified their purchases before the end of this year, to acquire a number of goods or buy devices and cars, days before raising vat to 10%.
Eyewitnesses said that the markets in various activities witnessed a heavy presence of citizens with the disbursement of December salary a few days ago. Furniture and building materials stores, gold and jewelry stores, electronic device stores in addition to car showrooms witnessed a strong demand from citizens who wish to buy these goods days before the VAT increases.
This month, the House of Representatives passed a law raising VAT from 5% to 10%, which will come into force in early January 2022, which means another increase in prices of goods and services.
Bahrain has been facing a budget deficit for years, due to low oil prices, the main source of state revenues, amid lack of a real plan to austerity or diversification of sources of income.