Bahrain Rejects Bill To Scrap Expat Fee

By Editorial 05 December, 2013

Bahrain's Shura Council has rejected a parliament bill to exempt low-income expats from the monthly fees which the country levies on foreign workers.

Currently the government requires public and private sector companies to pay between BHD5 (USD13.3) and BHD10 for every foreign worker they employ. The fees were suspended in April 2011 to alleviate the effects of financial unrest, but were reintroduced in August of this year.

MPs proposed eliminating the fees in the low-income sector to assist companies, but the chief executive of the Labor Market Regulatory Authority warned that reducing the fees according to sector would create instability. He pointed out that requests for expat workers grew 21 percent during the period in which the fees were suspended, and argued that the new proposal would result in companies lying about the salaries of their foreign workers to take advantage of the tax break.

In August of this year Bahrain halved the foreign worker fee to BHD5 for companies which employ less than five expats.

Tags: Tax | Bahrain | Fees | Expats |


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