Understanding Bahrain's excise tax — rates, registration, filing, and compliance for manufacturers, importers, and distributors.
Cigarettes, cigars, pipe tobacco, roll-your-own, e-cigarettes, shisha, and all heated tobacco products.
Any beverage marketed as an energy drink containing stimulant substances such as caffeine, taurine, ginseng, or guarana.
Carbonated drinks, concentrates, powders, gels, and extracts intended for use as beverages. Excludes pure fruit juices.
Excise tax is due at the earliest of: production of excisable goods in Bahrain, import into Bahrain, release from an excise tax warehouse, or stockpiling. The tax is calculated on the retail selling price (or a price-based equivalent set by NBR).
Excise tax returns are filed monthly via the NBR portal, due by the last day of the month following the tax period. Payment is due on the same date as the return filing deadline.
Late registration: Up to BHD 10,000
Late filing: BHD 500 per return + 2% of tax due per month
Late payment: 2% of outstanding tax per month (capped at 100%)
Tax evasion: Triple the tax due + criminal prosecution
VAT at 10% is charged on top of the excise-inclusive price. This means the effective tax burden on excisable goods is significantly higher than either tax alone.
Example: Pack of cigarettes (base price BHD 1.00)
Base: BHD 1.00 + Excise (100%): BHD 1.00 = BHD 2.00
+ VAT (10% on BHD 2.00): BHD 0.20
Consumer pays: BHD 2.20 (effective rate: 120%)
From registration to compliance and strategic planning — we've got you covered.
Get Expert Advice →