Citizens with a limited income who qualify for the Urban Development Scheme should be exempt from paying Value Added Tax (VAT) for the service, demanded a councillor.

Bahrainis who apply for government water-proofing services should also be exempt from paying VAT due to their limited income, said Northern Municipal Council technical committee chairman Abdullah Al Qubaisi.

The GDN reported in July that BD1,040,000 had been earmarked for homes requiring maintenance across all the four governorates.

This works out to BD260,000 per governorate compared to BD500,000 in previous years – a drop of 48 per cent.

“The Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa has said that exemptions from paying VAT will be made on service projects,” said Mr Al Qubaisi.

“Based on that statement it can be understood that the Urban Development Scheme and waterproofing services should be exempt from VAT as the people that apply for these government services have a limited income.

“Those who have their hands in water can’t comprehend what it feels like to have your hands burning in flames.”

His sentiments were shared by the council’s services committee chairman Faisal Shabeeb who stressed that the Urban Development Scheme is ‘a humane project’.

He added that it helps citizens – who are truly in need – and must be exempt from paying additional costs.

Meanwhile, council’s financial, administrative and legislative affairs committee chairwoman Zaina Jassim pointed out that a similar proposal has already been referred by Works, Municipalities Affairs and Urban Planning Minister Essam Khalaf to the Cabinet.

Northern Municipality director general Lamya Al Fadhala highlighted that there was a comprehensive and detailed list available highlighting items exempt from VAT.

“A letter must be sent to the ministry to focus on the items and products that the contractors procure,” added Mr Al Qubaisi.

“There are tenders that the government issues yet there is no follow-up.

“For example, a tender was approved for lights costing BD2, yet some contractors purchase them for 500fils and charge citizens BD5.

“This needs more monitoring.”

An extraordinary meeting will be held between the council and Works, Municipalities Affairs and Urban Planning Minister Essam Khalaf to review possible solutions and exceptions.

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