Bahrain Mirror: The Electricity and Water Authority confirmed that it will levy VAT on invoices as of January. This comes at a time of increasing voices rejecting the government's taxation policy.

The authority said in an email with which the tax registration certificate is attached, as of January 2019, the supply of electricity and water services is subject to the VAT of 5% of the value of the service.

Bahrain began applying the tax in response to the requirements of Gulf countries, which provided grants of up to 10 billion dollars to Bahrain. It is expected that the current year would witness a scheduled increase in electricity tariffs.

The fiscal balance plan, approved by Gulf donors, assumes that the electricity authority achieves balance by 2022.

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