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Bahrain Exempts 94 Items from VAT

A Bahraini man shops at a local supermarket in Isa Town south of Manama, Bahrain, November 28, 2018. (Reuters)
A Bahraini man shops at a local supermarket in Isa Town south of Manama, Bahrain, November 28, 2018. (Reuters)
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Bahrain Exempts 94 Items from VAT

A Bahraini man shops at a local supermarket in Isa Town south of Manama, Bahrain, November 28, 2018. (Reuters)
A Bahraini man shops at a local supermarket in Isa Town south of Manama, Bahrain, November 28, 2018. (Reuters)

Bahrain exempted on Tuesday 94 items from the Value Added Tax (VAT).

Minister of Finance and National Economy Sheikh Salman bin Khalifa Al Khalifa affirmed that the Ministry will take all necessary measures to ensure that VAT is not applied on zero-rated goods and services - 94 basic food items in addition to goods and services that support essential sectors - in line with the VAT Law and its Executive Regulations, reported Bahrain’s news agency (BNA).

The minister praised the King’s directive to review the mechanisms of applying VAT during its trial period, which takes into account citizens’ needs through the exemption and non-application of VAT on basic goods and services.

He underscored the ministry’s efforts aimed at bolstering transparency by dedicating resources towards raising VAT procedural and legal framework awareness.

He noted that all registered businesses are required to clearly display their VAT registration prior to levying the 5% tax.

All registered businesses are also legally required to display the final prices of all goods and services - inclusive of tax.

The Tax Invoice should include the full price, followed by the total price to be paid and the amount of tax charged therein as it is a violation to mislead consumers.

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Business

SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
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SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)

Saudi Basic Industries Corp (SABIC), one of the world’s largest petrochemical firms, returned to profit in the third quarter, recovering from a loss a year earlier, helped by higher revenue and core earnings.

SABIC, 70% owned by Aramco, reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30, according to a disclosure to the Saudi Stock Exchange (Tadawul).

This is a major improvement from a loss of SAR 2.87 billion during the same period last year.

SABIC CEO Abdulrahman Al-Fageeh said: “The increase in the third quarter’s profits compared to the same quarter last year is attributable to higher average selling prices of some key products, and a decrease in total losses on non-continuing operations.”

Analysts had projected that SABIC would achieve profits of up to SAR 1.7 billion.

SABIC attributed its growth mainly to higher average selling prices, which were partially offset by a slight decline in sales volumes.

The company’s net profit was primarily driven by an increase in operating income of about SAR 797 million, thanks to improved profit margins despite higher operating costs. Gains also came from selling its specialized business that produces plastic sheets and films, along with foreign exchange benefits in the third quarter of 2024.

Profit was also driven by a decrease in losses from discontinued operations by around SAR 3.3 billion, mainly due to the fair value assessment of Saudi Iron and Steel Company (Hadeed), classified as a discontinued operation while awaiting the closure of a previously announced sale.

This was partly offset by a drop in financing income of SAR 390 million from the revaluation of equity derivatives, which are non-cash items.