Bahrain to study tax system
Manama, July 22, 2011
Delegates at Bahrain's National Dialogue last night agreed a study on a possible tax system for the kingdom.
Abdulhameed Al Kooheji, who is representing the National Unity Assembly, said members attending the economic sessions had reached consensus on 50 topics so far, with 20 other subjects yet to be discussed.
"One of the issues that was debated (yesterday) was the introduction of a taxation system," he told the Gulf Daily News, our sister newspaper, on the sidelines of the talks.
"Bahrain is a liberal, tax-free country and there should be a clear study carried out with neighbouring Gulf countries on the feasibility of taxation."
However, he said that economic competitiveness was imperative, with Bahrain's tax-free status an attraction for foreign businesses.
"There is no doubt in the future taxation will be considered, but at the moment we have reached a consensus to carry out a study for proper research to align our decision with our neighbours."
Participants in the economic session also discussed cutting the budget deficit, identifying target groups, government revenues and social justice.
Kooheji added it was important to improve the living standards of citizens through subsidisation of essential goods, as well as providing government support to companies affected during Bahrain's unrest. - TradeArabia News Service