Gold rush before VAT kicks in

Jewellery showrooms in the Kingdom witnessed a huge rush yesterday with customers buying large quantities of gold ornaments, two days before the Value-Added Tax (VAT) kicks in.

The Kingdom is all set to implement VAT tomorrow after the legislation was passed by the parliament and Shura Council. Although this pre-VAT rush was expected, many jewellers said the businesses surpassed all expectations. “We had a good business during the past week,” a jeweller told Tribune. He said that almost all jewellers of Manama, have been stocking latest ornament designs expecting a pre-VAT rush.

The price of 22-carat gold also rose from BD14.6 per gram to BD16.2 yesterday. Speaking to Tribune, a housewife said that she was happy to buy her favourite ornaments without paying VAT. “Though the gold price increased during the past week, I happy that I could buy some ornaments without paying VAT,” she said.