Tax advisory for waste collection, treatment, and recycling operators.
Municipal waste collection contracts — standard-rated services. Government contracts may include payment-in-kind arrangements. Hazardous waste handling — specialist licensing and VAT treatment.
Sale of recycled materials (metals, plastics, paper) — standard-rated at 10%. Scrap metal exports — zero-rated. Carbon credit generation from waste-to-energy — evolving VAT treatment.
Electricity from waste — standard-rated supply to EWA. Gate fees from waste producers — standard-rated. Capital allowances on treatment plant infrastructure. Environmental compliance costs.
Bahrain's waste management sector is undergoing transformation under the National Waste Management Strategy. Target: 100% waste diversion from landfill by 2030. The Askar landfill closure has accelerated private sector investment in recycling and waste-to-energy. PPP contracts offer opportunities with specific tax structuring requirements.
