MPs have voted against a proposal to tax expat remittances. The proposal had been criticised by a cross-section of the expat community and was deemed unconstitutional by the parliament’s financial and economic affairs committee.
It was voted down by MPs yesterday based on concerns that it would create a black market for illegal money transfers that could damage Bahrain’s reputation as a financial centre. However, a vote on whether expats should pay twice the amount as GCC citizens to register vehicles was postponed until next Tuesday because not enough MPs were present.
Most of the 16 present for discussions were in favour of the vehicle registration proposal, despite that also being branded unconstitutional by the same parliamentary committee. As a result Parliament and Shura Council Affairs Minister Ghanim Al Buainain accused MPs of having double standards. “We and expatriates are partners in this country and we are very proud that they are here to help us with development and progress,” he said. "There are 600,000 expatriates in Bahrain and most have low incomes, receiving an average of BD100 a month. Only one per cent of Bahrain’s expatriates are well paid. Parliament just opposed taxing remittances because it would place a huge burden on expatriates, but wants to double vehicle registration knowing it will affect the lives of expatriates. We (the government) are opposing anything that harms the country’s reputation as a magnet for expatriates. Yet MPs will do so (damage Bahrain’s reputation) by differentiating between people (based on their nationality).”
Parliament youth and sport committee chairman, MP Dr Ali Bufarsan, said any increase in costs for expats would indirectly impact their Bahraini employers. “Let’s imagine the (vehicle registration) service gets doubled, Bahrainis will end up paying the difference since they are the employers and have brought expatriates here,” he said.
However, MP Khaled Al Shaer criticised the government for increasing certain fees for expats and not Bahrainis – but then complaining about plans to increase expats’ vehicle registration costs. “The government is forcing expats to pay more for electricity and water, health, municipality, sewerage and other services and never thought about their welfare,” he argued. “When it comes to doubling vehicle registration fees it says it is wrong and we should be stopped on the basis of equality.”
Others supporting an increase in vehicle registration fees for expats was parliament services committee chairman Abbas Al Madi. “Bahrainis live in the street and can barely last a week on their monthly income, while expatriates live in luxurious villas,” he complained. “Expatriates are being hired for jobs that should be occupied by Bahrainis and are treated like kings. This is why they think our country is the best in the world.”
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MP Ahmed Qarrata argued expats should not expect equal treatment based on the experiences of Bahrainis living abroad. “Why should we be generous with expatriates when we are being forced to pay triple for services in their countries?” he asked. “There are around 90,000 vehicles owned by expatriates in Bahrain, according to documents presented by the General Directorate of Traffic. “If they are able to buy a vehicle in the first place and pay BD20 (for registration) annually, they can afford BD40 (to register it).”
MP Dr Jameela Al Sammak said MPs who defended expats’ rights should be ashamed, since they were elected to represent Bahrainis. “We are here to defend the welfare of Bahrainis, not expats,” she said. “We should be doubling registration fees (for foreigners), not opposing it because expats will be impacted. “It is shameful that people in parliament are supporting expats rather than Bahrainis.”
