Manama, December 29 (BNA): The prime minister and crown prince, His Royal Highness Prince Salman bin Hamad Al Khalifa, presided over the weekly Cabinet Meeting at Gudaibiya Palace today.
HRH the Crown Prince and Prime Minister chairs the weekly Cabinet Meeting
His Majesty King Hamad bin Isa Al Khalifa, the Supreme Commander of the Armed Forces, observed the conclusion of the national virtual exercise “Azm Al Watan 1,” and the Cabinet praised its results.
His Royal Highness thanked the people of Muharraq for their hospitality and warm welcome to guests from Bahrain and elsewhere, reflecting on his recent visit to the Muharraq Nights Festival.
The Cabinet also praised the Celebrate Bahrain season’s events, which include the Heritage Village and Hawa Al Manama in addition to the Muharraq Nights Festival, emphasizing the excellent planning and the efforts of the relevant agencies.
The Cabinet wished the Kingdom of Bahrain and its citizens ongoing success and prosperity on the occasion of the approaching New Year.
Additionally, the Cabinet wished all Bahraini students well on their first semester exams for the 2025–2026 school year.
The Cabinet, working with the Legislative Branch, decided to keep the first and second consumption tiers of electricity and water tariffs for citizens’ primary residences in place and to delay any changes to the mechanisms of electricity and water subsidies for citizens’ primary residences until more research is done.
The following measures to improve the Kingdom’s financial situation in favor of its residents were then adopted by the Cabinet:
1. Cutting administrative costs by 20% for all government agencies while keeping Bahraini residents’ access to high-quality services. The Minister of Finance and National Economy was assigned by the Cabinet to take the appropriate action.
2. Increase government-owned businesses’ contributions to the Kingdom’s overall budget.
3. Referring a draft law to the Legislative Branch that, in accordance with agreements with the Legislative Branch, imposes a 10% tax on the profits of local businesses whose annual revenues exceed BHD 1 million or whose net annual profits exceed BHD 200,000. Any sum after the BHD 200,000 benchmark will be subject to the tax. With the goal of putting the draft law into effect in 2027, the action intends to encourage the diversification of income sources and assigns the Minister of Finance and National Economy the responsibility of taking the required actions.
4. Increasing the selective levy on soft drinks by referring a draft bill to the Legislative Branch, subject to cooperation with the Legislative Branch. The Minister of Finance and National Economy was assigned by the Cabinet to take the appropriate action.
5. In order to improve the use of undeveloped investment areas with current infrastructure services, a monthly fee of 100 fils per square meter will be implemented in January 2027. The Minister of Municipalities Affairs and Agriculture was assigned by the Cabinet to take the appropriate action.
6. In January 2026, costs for sewage services, excluding citizens’ principal dwellings, will be implemented. These prices will be determined at 20% of water consumption charges. The Minister of Works was assigned by the Cabinet to take the appropriate action.
7. A study of healthcare costs and worker permits. Domestic workers will be spared from the new costs, which will be gradually introduced over a four-year period beginning in January 2026. The Cabinet assigned the Ministers of Labor, Legal Affairs, and Health to take the appropriate actions in this regard.
8. Starting in January 2026, natural gas rates for businesses and factories will be gradually adjusted over a four-year period to reflect the true cost of use. The Minister of Oil and Environment was assigned by the Cabinet to take the appropriate action in this regard.
9. The creation of a gasoline pricing scheme. The Minister of Oil and Environment was assigned by the Cabinet to take the appropriate action in this regard.
10. Taking into consideration extended families living in a single household, the Cabinet confirmed that water and energy rates for the first and second tariff bands for citizens’ primary dwellings shall stay the same. The Cabinet also decided to modify the electricity and water consumption tariffs for other categories, with implementation slated for January 2026, and to delay any changes to the mechanisms of electricity and water subsidies for citizens’ primary residences until more research is done. The Minister of Social Development and the Minister of Electricity and Water Affairs were assigned to take the appropriate action in this regard.
11. Simplifying and improving the effectiveness of government processes that facilitate investment in order to draw in foreign capital and bolster the private sector’s participation.
