Syed Hussein Al -Qassab
The Shura Council rejected a draft law on the external financial transfers tax “prepared based on the proposal of a law on the external financial transfers tax, and the proposal of a law – with its amended formula – regarding the external cash transfers tax on expatriates and residents in the Kingdom of Bahrain” with their unified compact form “submitted by the House of Representatives.
The decision of the committee, Sadiq Al Rahma, affirmed that the Financial and Economic Affairs Committee expressed its appreciation for the principles and foundations on which the draft law was built, while it indicated that the application of the draft law will result in side effects that differ from the goals and goals desired from its application, and the most important of these effects is the low number of external transfers that are made by the legal legal methods available.
For his part, a member of the Shura Council Ali Al -Aradi stated that the draft law aims to solve a problem, but there is no problem at all, but there are many sockets on the proposal, as it will create a reserve market for financial transfers if it is approved.
He inquired about the reason for determining the draft law 2% as a tax on transfers, and based on what was determined by this percentage? Was it placed on foundations and studies? In order to be randomly taken.
He stressed that the imposition of the tax on all countries of the world will be met by reciprocity, and taxes will be imposed on Bahraini citizens in the rest of the countries, pointing out that there is a discrimination between the foreigner and the Bahraini in the draft law. In turn, a member of the Shura Council, Abdullah Al -Nuaimi, stated that a draft law on foreign financial transfers tax is not officially applied, and may lead to corruption or dodging.
