Bahrain: MPs attempt to tax expats rejected AGAIN

Manama: Lawmakers in Bahrain have resisted two attempts to make expatriates pay new taxes for owning cars and for sending money home.

A draft law submitted by MPs said that every foreigner who owned a car should pay BD40 in annual registration fees, double of what Bahrainis pay.

The lawmakers who presented the draft said that 90,000 foreigners owned cars in the kingdom and that doubling registration fees would mean extra cash annually for the state.

The proposal, supported by MPs Ahmad Qarata, Ghazi Al Rahma, Jamal Dawood, Jameela Al Sammak and Abbas Madhi, had been earlier rejected by the foreign affairs committee as unconstitutional.

However, the lawmakers went ahead with it and sought to convince their peers of its merits for generating extra revenues.

With only 16 lawmakers present at the session on Tuesday out of the 40 comprising the Council o Representatives, there could be no vote on the issue. The issue would be taken up at the next session next week.

Other lawmakers said that foreigners sending money home should be made to pay a remittance fees for the state.

However, the proposal was rejected on the ground that it would be discriminatory on the basis of nationality and could cause the emergence of a parallel financial market that would harm Bahrain’s reputation as a commendable financial centre.

Source – Gulf News

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