IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg

IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg:

"Bahrain should consider implementing corporate income tax to shore up its finances as rising interest rates hinder its ability to borrow, the International Monetary Fund said.

“Notwithstanding notable measures implemented since 2015, a credibly large fiscal adjustment is a priority,” the IMF said in a report dated May 30. “The implementation of a value-added tax, as planned, would be important. Additional revenue measures -- including consideration of a corporate income tax -- would be welcome.”

Bahrain was one of the hardest-hit Gulf economies after oil prices began falling in 2014, with authorities seen slower to react than countries such as Saudi Arabia. Even as oil prices recovered this year, the country’s debt risk, as measured by five-year credit default swaps, climbed to a 2016 high of 385 basis points this month, according to CMA data compiled by Bloomberg."



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