Bahrain Unveils Package of Reforms to Fight Fiscal Woes

Bahrain approved fiscal reforms including changes to corporate income tax and spending cuts as the island nation seeks to curb rising debt levels and budget deficits.

A new law on corporate tax will apply to local companies, the government said in a statement on Monday, without disclosing detail on the change.

Reforms also include plans to raise fuel and natural gas prices, increase dividends from state-owned companies and cut administrative government expenditures by 20%.

The announcement comes as entities from the International Monetary Fund to ratings agencies sound the alarm over Bahrain’s increasing debt load and deteriorating fiscal position. The ...