MANAMA – Bahrain's government sent a draft bill to parliament for approval to amend the value-added tax rate, currently at 5%, from next January, the state-run Bahrain News Agency said on Monday.

BNA did not say whether the amendment referred to a hike or a cut in the rate.

A parliamentary source and a source close to the government told Reuters on Sunday the government is considering doubling VAT to 10% to boost state revenues and reduce its budget deficit.

Bahrain’s economy is seeking ways to cut spending and bring its budget back into balance by 2024, an official close to the government told Bloomberg News. – Agencies