A comprehensive package of fiscal initiatives aimed at strengthening the kingdom’s financial position while safeguarding support for citizens was unveiled today during a high-level press conference led by Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa.
Key measures
1. Reducing administrative expenses across all government entities by 20pc, while maintaining the quality of public services provided to citizens without affecting projects or civil servants.
2. A monthly 20pc sewage levy calculated from total water consumption with the first household exempted.
3. Electricity and water subsidised rates for citizens in their first household would remain for the first and second category, while authorities review consumption of compounded families in one household. The unsubisidised electricity rates on all categories have increased from 29 to 32 fils per unit, while for water the rates will increase from 750 to 775 fils per unit.
4. The government has referred a draft law to the legislative authority proposing a 10pc levy on net profits exceeding BD200,000 for local companies. The measure, aimed at diversifying income sources, will apply to firms whose annual revenues exceed BD1 million or whose net profits surpass the BD200,000 threshold. Profits up to BD200,000 would remain fully exempt, with the levy applying only to amounts above that figure. The proposed law is expected to come into force in 2027, following legislative approval.
5. Fuel prices would be also reviewed and details announced by a new permanent committee. Diesel prices will remain subsidised for fishermen.
6. A review of work permit fees for foreign workers, with gradual implementation scheduled to begin in January 2026. Certain categories of workers will be exempt. Work permit fee will be increased from BD105 to BD125 over a four year period, while monthly fee will rise from BD10 to BD30 during the same period. Health insurance for expats to be increased from BD72 to BD144 gradually over four years.
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