Bahrain Mirror: The Minister of Cabinet Affairs Mohammed Al-Mutawa demanded to impose a tax on income in Bahrain, stressing that the challenge Gulf States face is remaining rentier states that depend on oil in feeding their budgets. Al-Mutawa pointed out that Bahrain depends on oil in 86% of its budget.

In a meeting held in the journalists society building on Tuesday (November 21, 2017), the Minister, who has close ties with the Prime Minister, said that "the government's new role is different than the past. The Government is the one currently spending on the economy and moving it, when it should start thinking as a service organizer in cooperation with the private sector, not an executioner."

He continued "There is a 4.3% growth in the non-oil economy, but, I, as a Minister don't see a reflection of the growth in the State budget, so the next government must establish a direct link between growth and budget to ensure sustainability in various services, which cannot be guaranteed for the middle class and all Bahrainis, if the rentier state system that depends on oil continues, without the contribution of the national economy in the budget."

Al-Mutawa called for preparing the Bahraini society and government together "to enter a modern economy that would shift Bahrain from the rentier state phase to a national economy recovery phase, through the income tax by which every citizen contributes in boosting the economy."

"The Bahraini society shouldn't be afraid of taxation. 400 investors in America submitted a petition refusing to reduce taxes on corporations. Taxes are fair, and there are many ways to apply them and they will contribute to entering modern economy," he further stated.

He explained that "even if oil prices increase, taxes will remain a must. Norway doesn't spend even one dollar of oil revenue, it all goes to the sovereign Fund. However, the government's budget comes from taxes."

Nonetheless, Minister Mohammed Al-Mutawa rejected imposing taxes on foreigners in Bahrain, saying "what the expatriate gives to Bahrain is more than what he takes," calling for eliminating the idea that "the expatriate comes to take the country's wealth, when foreign workers leave their families and lose a lot to take part in developing this country. Thus, when taxes are imposed, they shouldn't be selective."

Arabic Version