Bahrain may face suit over tobacco tax plan
Manama, May 17, 2014
Bahrain may be sued in international courts over plans to triple import levies on tobacco products, said a report.
News of an imminent massive increase of duties by 100 to 300 per cent has caused an uproar.
A group of directors and dealers representing international tobacco companies met at Capital Club in Manama to discuss the move, sources told our sister paper Akhbar Al Khaleej.
It was reportedly attended by a high-level US Trade Department official who was on a visit to Bahrain.
Members of the American Chamber of Commerce and other officials from Dubai and other GCC capitals also converged on Manama to attended the meeting.
They discussed filing an international court case against Bahrain over claims that Manama authorities failed to implement some articles of the Free Trade Agreement between the two countries.
The deal allows American products to enter Bahrain free of customs duty.
Tobacco companies are reportedly mulling plans to take legal action to counter the proposal which is still being discussed in parliament.-TradeArabia News Service