Bahrain's infrastructure levy could be relaxed under new amendments to be debated in Parliament.
Three sets of amendments to introduce a cap on the collected tax and exempt new residential projects, places of worship, societies and cemeteries from the tax will be put for a vote at Tuesday’s weekly session.
However, the government has asked MPs to rethink the proposed amendments, which go against the core purpose of introducing the levy and will decrease revenues.
Works, Municipalities Affairs and Urban Planning Minister Essam Khalaf revealed last month that around BD10 million was collected as infrastructure tax since its introduction in 2017.
He said levies totalling BD14.6m were issued between January 2017 and September last year, while BD9.5m was collected.
Under the 2015 Infrastructure Cost and Development Law, a levy of BD12 per square metre is issued on all developments in a bid to fund infrastructure projects such as roads network, sewerage systems, electricity and water schemes.
The tax aims to support the state budget by collecting money from property developers to fund infrastructure within undeveloped areas.
The levy is also applied on Bahraini nationals and expatriates who tear down their rundown homes and rebuild new residential properties.
Meanwhile, at Tuesday’s weekly Parliament session MPs are also set to vote on government-drafted amendments to the 2006 Central Bank of Bahrain (CBB) and Financial Establishments Law.
The amendments will give the CBB more powers to stabilise financial activities, monitor deals and take necessary action against violations.
On Tuesday, Housing Minister Bassem Al Hamer is set to appear in the chamber to respond to questions on the progress of ongoing projects.
He said in writing to MPs that the first phase of the East Sitra Town will start this year and was expected to complete in 2022.
“While the second phase will begin in 2022 and complete in 2025, and the third phase will start in 2024 and end in 2025,” said Mr Al Hamer.
“In total we are looking to provide 3,000 housing services over 243 hectares.
“Also, for strips of land adjacent to government homes in Hamad Town we have agreed to sell 31 while 27 were rejected with infrastructure being our utmost priority.”
Complaints
Also set to appear on Tuesday is Industry, Commerce and Tourism Minister Zayed Alzayani, who told MPs in writing that 3,403 complaints were received by the consumer protection directorate last year. Of those, he revealed that 3,359 have been resolved.
“The remaining are a few and they were submitted late last year and are being resolved through our 22 inspectors,” said Mr Alzayani.
He has also submitted a reply from the Bahrain Chamber of Commerce and Industry stating that its spending for 2018 was BD3.72m, while the auditor was still working on spendings for last year.
Parliament is also set to vote on a mutual taxation agreement with Pakistan.
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