Bahrain Levies 2% Tax on Expat Remittances, Sparking Mixed Reactions

Manama, Bahrain, January 9, 2024 : Bahrain's parliament has approved a 2% tax on expat remittances, a move that has drawn strong opposition from the government. The government argues that the tax is unfair, unconstitutional, and will damage the economy. Parliament, however, disagrees and says that the government is protecting expats at the expense of Bahrainis.

The new tax is expected to come into effect later this year and will apply to all money sent out of Bahrain by foreign workers. The government has warned that the tax could lead to a decline in foreign investment and economic activity. They also argue that it is unfair to target expats, who already contribute significantly to the Bahraini economy.

Parliament, on the other hand, argues that the tax is necessary to raise revenue and reduce Bahrain's dependence on oil. They also say that it is fairer than other taxes, such as the value-added tax (VAT), which is applied to all goods and services.

The debate over the expat remittance tax is likely to continue in the coming months. It remains to be seen whether the government will be able to block the tax or whether it will come into effect as planned.

Source : https://www.zawya.com