Bahrain govt near-doubles alcohol duty
The Bahraini government has almost doubled alcohol import duties in the country, with retailers and suppliers reportedly given no warning.
Bahrain has almost doubled its import duty to alcohol to 225%It is understood that import tariffs increased from 125% to 225% on Friday 5 February.
“Our company system for all import orders is connected to Bahrain Customs, and when we checked on Sunday [7 February] it showed a 225% import duty on alcoholic beverages,” an alcohol retailer told Gulf Daily News on condition of anonymity.
Government spokesperson Isa Al Hammadi said the move “automatically went into effect” at the decision of finance minister, Shaikh Ahmed bin Mohammed Al Khalifa.
Prices are expected to be passed on to consumers, with the hotel and hospitality sector most affected. There are also fears the hike in import duties will fuel the black market in the country.
Bahrain Chamber of Commerce and Industry food and alcohol committee chairman, Khalid Al Amin, said the move would be a money-saver for the government as oil prices remain low.
“It is important that things change around us because of the low oil prices and their effect on regional economies. Import duties are still low compared with other countries and we need to develop revenues resources now to cover the budget deficit.”
Bahrain is the latest country to increase duties on alcohol, following Indonesia’s 150% import tax hike in July 2015, and Belgium’s 40% jump in spirits excise in November.
