ID :
396488
Tue, 02/09/2016 - 22:17
Auther :

New tobacco tariffs clarified, US tobacco prices unchanged

Manama, Feb. 9 (BNA): Import duty levied on tobacco have increased from 100% to 200% under a recent decision to readjust taxes on special commodities. The move is part of initiatives to develop state revenues and revitalise the financial standing amid budget deficit resulting from plummeting oil prices in international markets. However, the price of a single packet of cigarette would go up by 200 fils only. For instance, a packet of cigarettes usually priced at BD1 would be up by a maximum of 200 fils, to be sold from now on at retail outlets at BD1.200. Meanwhile, the prices of US tobacco would remain unchanged after the import duty exemption took effect on the 1st of January, 2016, under the Free Trade Agreement (FTA) binding the Kingdom of Bahrain and the United States of America. The new levy is deemed special and does not thus constitute a customs tax, nor does it contravene Bahrain's legal or trade obligations with other countries, relevant regional and international organisations, specially the Gulf Cooperation Council (GCC) and the World Trade Organisation (WTO), as stipulated in the provisions of the unified customs law. Citizens and residents are required to report any shopping outlets which are tampering with the prices of tobacco to the Consumer Protection Directorate. The competent authorities have already started a stringent clampdown to sanction any tampering with the prices and take the necessary legal measures.

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