Bahrain Implements Fiscal Reforms to Enhance Public Finances and Support Economic Vision 2030
Bahrain's government has announced a fiscal reform package to reduce public spending, increase revenue, and protect subsidies for citizens. Key measures include raising fuel prices, adjusting electricity and water tariffs for certain categories, and increasing contributions from state-owned enterprises.
While tariffs for primary residences will remain unchanged, amendments for other categories will start in January 2026. A 10% corporate income tax will be introduced in 2027 for companies exceeding 1 million Bahraini dinars in revenue.
Other reforms include rising natural gas prices for businesses and a 20% cut in administrative spending. The government will also charge a monthly fee for undeveloped investment land, starting in January 2027, and phase in revised worker permit and healthcare fees over four years, exempting domestic workers. These reforms align with Bahrain's Economic Vision 2030, aimed at fiscal discipline and economic diversification.
