Bahrain rolls out big fiscal reforms

TARIFFS AND FEES TIGHTENED, CORPORATE TAX PLANNED IN BID TO WIDEN NON-OIL REVENUE BASE

- BY NIVETHA DAYANAND

Bahrain has announced one of its most sweeping rounds of fiscal reform since 2018, targeting a wider tax base, a leaner government, and higher non-oil revenues, while pledging to shield citizens from the harshest shocks.

The new package, unveiled in Manama on Monday, tightens tariffs and fees across fuel, utilities and municipal services, and prepares the ground for a corporate income tax on local firms as the kingdom responds to mounting debt pressures and a wider budget gap.

“The Government of Bahrain is taking decisive action to lock in even stronger economic and fiscal foundations. Our reform agenda is built to last — it is a long-term commitment to stability, sustainability, and growth,” said Sheikh Salman Bin Khalifa Al Khalifa, Minister of Finance and National Economy, adding that the state is “protecting citizens where it matters most, while strengthening an economy that is fairer, more attractive to investors, and more sustainable.”

What is changing?

The new package tightens policy on several fronts.

■ Retail fuel prices will rise and be set through a monthly pricing mechanism, aligning domestic pump rates more closely with global trends and reducing the fiscal burden of energy subsidies.