Bahrain to begin levying SIN Tax

The 'SIN'/selective tax, to be eventually implemented by all countries of the Gulf Cooperation Council – Kuwait, Bahrain, Qatar, the United Arab Emirates, Oman, and Saudi Arabia – was approved on June 16, 2016 in unified GGC agreement which included the most anticipated value-added tax.

It had been proposed in unified GCC tax agreement that the GCC "selective excise tax" would be levied by October 1, 2017, across all the GCC member states. 

However, certain delays were observed with regard to implmentation of the GCC unified agreement incuding the imposition of VAT besides UAE and Saudi Arabia.

Both Saudi Arabia and UAE have been strictly following the timeline of the unified agreement and have sucessfully implmented both selective taxes on harmfull and luxury products and Value Added Tax with effect from January 01, 2018. You may click below links of our previous blogs for further details regarding the said laws in UAE and Saudi Arabia:

1) Taxation in GCC;

2) Excise Tax in UAE;

3) VAT Invoicing in KSA;

Qatar had already introduced sin tax on luxury items and products that are "harmful to human health and the environment," in line with the unified agreement among Gulf Cooperation Council (GCC) member states.

Qatar's cabinet approved legislation on selective tax prepared by the ministry of finance on February 17, 2017. The scope of tax and the specified rates remained in line with rest of the GCC states ranging from 50% to 100%.

Moving in the same direction Bahrain is now all geared up to implement the Selective/SIN/Excise tax on harmfull and luxury items prior to imposing VAT. 

BAHRAIN - Ministers approve GCC's Selective Excise Tax

Bahrain's Cabinet approved Gulf Cooperation Council proposals for a selective excise tax on unhealthy drinks on October 16, 2017, the state news agency reported.

The Cabinet approved a draft law, which would impose a tax of 100 percent on tobacco products, a 100 percent tax on energy drinks, and a 50 percent tax on carbonated beverages.

As per Bahrain's Cabinet approval the introduction of the Gulf Cooperation Council's so-called selective tax on unhealthy commodities was to become effective from December 30, 2017.

As previously announced, tax at 50 percent would be levied on soft drinks, and a 100 percent rate would be levied on tobacco products and energy products.

Click here for Source.