TaxSavvyBH

GCC volumetric sugar tax and Bahrain

Saudi and Qatar moved to a sugar based tax on drinks. Has Bahrain done the same?

The situation

Some GCC states have adopted a tiered volumetric model for sweetened drinks. Bahrain's adoption was not confirmed in sources reviewed.

The law

  • Decree-Law No. 40 of 2017 on Selective Tax (Excise): Excise on tobacco products and energy drinks at 100% and on carbonated and sweetened drinks at 50%, administered by the NBR

What it means for you

Some GCC states have adopted a sugar based tiered model for sweetened drinks. The sources reviewed did not confirm Bahrain's adoption or date. Until the NBR announces a change, keep using the current rates, but model the sugar tiers so pricing can change quickly.

What to do

  1. Keep current rates.
  2. Watch the NBR.
  3. Model sugar tiers.
  4. Update prices when enacted.

Unverified for Bahrain.

We can do this for youExcise (selective tax) registration and returns for importers and producers: BHD 250

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