Syed Hussein Al -Qassab
The Chairman of the Shura Council, Ali Al -Saleh, stressed during their discussions of Decree Law No. 11 of 2024 regarding the regulation of the tax on multinational projects, that the aim of the decree is to support the state’s general budget from carrying out any tax burdens, stressing the importance of this step in enhancing the financial sustainability of the Kingdom of Bahrain. He stressed that this tax is not directed to the citizen, but rather will contribute to supplying the state budget, pointing out what the Chairman of the Financial and Economic Affairs Committee, Khaled Al -Muscati, explained that the expected revenues from the application of this decree may amount to about 130 million dinars in 2026.
Meanwhile, Dr. Muhammad Al -Khuzai explained that until recently, some were circulating an idea that was not related to reality, suggesting that there are no taxes imposed on people, while the fees imposed were an indirect form of tax. He pointed out that the beginning of the actual taxes was through the value -added tax, and it was preceded by customs duties, real estate registration fees and others. He added, “Perhaps the inevitable turning point was the issuance of Decree Law No. 11 of 2024, which changed people’s concepts about taxes and the need to collect them.”
Al -Khuza’i indicated that the relevant committee clarified the justifications for the issuance of the decree as part of urgent measures aimed at enhancing the state’s ability and sustaining in developing the public revenue system, and seeking to provide the necessary funding to cover the increasing financial needs resulting from expansion in public projects in various sectors, and facing the deficit in the public budget, stressing that “taxes are necessary for these reasons.”
For his part, the President of the Shura Council, Ali Al -Saleh, stressed, in his comment on the intervention of Khuza’i, that the aim of this decree is to impose taxes on multinational companies, not on individuals or citizens.
He explained that these companies, in the event that the taxes in the country of the headquarters are not paid “Bahrain”, will be obligated to pay them in the country of origin, wherever it is, stressing that the first of these taxes is the Kingdom of Bahrain, since these companies operate inside the Kingdom.
