Bahrain will start implementing the new ‘sin tax’ from Saturday.
The tax will double the price of energy drinks and lead to a 50 per cent increase in the price of soft drinks.
A 40pc Customs duty previously applied to cigarettes will be scrapped and they will instead be subject to a 100pc tax – meaning a packet that currently costs BD1.4 in the shops will cost BD2.
The tax aims to encourage citizens to opt for healthy products, reduce the consumption of harmful goods, enhance social awareness and alleviate the financial burden resulting from treatment of serious diseases.
The selective tax was approved by GCC countries at a summit in 2015.
According to a new law, traders wishing to import or produce such goods are required to submit an application in this regard by January 15, 2018.
“The ministry will finalise the registration pending completion of terms and regulations stipulated in the law,” said assistant under-secretary for public revenues development Rana Ibrahim Faqihi.
“Violations or tax evasion would attract administrative fines and criminal penalties.
“Those who fail to submit tax statements to the ministry or pay the required fee within the deadline would be fined 5pc to 25pc of the overall value of the tax, in addition to the payment of the fee,” Ms Faqihi said.
“Violators, who prevent the ministry’s employees from performing their duties, refuse to supply them with the required information or break the law would be fined up to BD5,000.”
Source Credit: Gulf Daily News