Legal action against shops tampering with tobacco prices

Import duty levied on tobacco has been increased from 100 per cent to 200pc under a recent decision to readjust taxes on special commodities. The move is part of initiatives to boost state revenues and revitalise the financial standing amid budget deficit resulting from plummeting oil prices in international markets. 

However, the price of a single packet of cigarette would go up by 200 fils only. For instance, a packet of cigarettes usually priced at BD1 would be up by a maximum of 200 fils, to be sold from now on at retail outlets at BD1.200. 

Meanwhile, the prices of US tobacco would remain unchanged after the import duty exemption took effect on January 1, 2016, under the Free Trade Agreement (FTA) binding the Kingdom of Bahrain and the United States. 

The new levy is deemed special and does not thus constitute a customs tax. 

It does not contravene Bahrain’s legal or trade obligations with other countries, relevant regional and international organisations, specially the Gulf Cooperation Council (GCC) and the World Trade Organisation (WTO), as stipulated in the provisions of the unified Customs Law. 

Legal action

Any commercial or shopping outlets that tamper with the prices of tobacco will be held legally responsible for breaching chapter four of the Consumer Protection Law number 35 of 2012, and more specifically articles 12, 13 and 14, the Consumer Protection Directorate revealed in a press  statement. 

The Consumer Protection Directorate called on retail and shopping outlets to comply with the laws and regulations, pointing out that administrative and legal procedures will be taken against any violation. 

Any transgression will lead to a maximum five-year in jail and a fine of no less than BD5000 or any of the two penalties. Administrative procedures will also be taken for breaking the law. 

Citizens and residents are required to report any violation in this respect by calling the Consumer Protection Centre on 17007003.