Shura Council may turn down MPs' push to scrap 2% fee for first-time property transfers and gift tax
A proposal to waive the 2 per cent fee for first-time property transfers, along with charges on gifts valued above BD50,000, is expected to be rejected by the Shura Council on Sunday.
The measure has drawn strong objections, with warnings that it would cut into public revenue and leave room for misuse.
A similar draft was turned down during the fifth legislative term.
Lawmakers backing the draft say it would ease the financial burden on families trying to buy or pass on a home, especially those already under pressure from upfront costs.
Financial strain
The idea is to remove fees for first-time residential property transfers, and for certain gifts of property, to help more Bahrainis secure housing without added financial strain.
The draft, introduced by the elected chamber, seeks to amend Article 59 of the Property Registration Law to allow a one-time exemption from registration charges for Bahrainis.
However, the Council's Public Utilities and Environment Committee and the government argue that the goal is already being met and that the change would raise problems.
Housing loans
Current law exempts those who take housing loans from Eskan Bank from these charges, up to the value of the loan. That system is based on the individual, not the transaction.
According to the committee and the government, shifting the basis of exemption could lead to people using others who have never owned property to sign sham contracts and claim the exemption.
The government has also noted that any measure likely to reduce public revenue must first be agreed with the Cabinet, in line with the Constitution.
The Survey and Land Registration Bureau backed these concerns, warning that the proposed change would reduce income from a key stream of nonoil revenue.
Enforcement and fairness
It said the purpose of the amendment is already addressed by existing laws. Legal advisers raised further concerns about enforcement and fairness.
Members of the committee also pointed out that the current system has not given rise to major issues.
The 2 per cent registration fee is already subject to a 15 per cent discount if the transaction is filed within 60 days. This gives buyers an incentive to act swiftly without stripping income from the state.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Tribune
20 hours ago
- Daily Tribune
Shura Committees tackle Child Law gap and plan to create Sports Support Fund
Lawmakers are seeking to close a legal gap in the Child Law that has allowed people to be punished without the offence being clearly set out in writing. A proposal now with the government aims to amend Article 63 of the 2012 statute to make clear that running or changing the site of a nursery is only a crime when done without a licence or without the Ministry of Education's say-so. The current version of the law, as it stands, imposes penalties in sweeping terms. It refers to anyone who sets up or operates a nursery, or alters its premises or features, without stating what makes these actions unlawful. Those behind the amendment argue this runs foul of Article 20 of the Constitution, which says no one may face punishment unless the act is clearly defined by law. Offence The suggested change spells out the offence in plain terms: operating without a licence or making changes without the ministry's agreement. It was put forward by Shura Council members Fatima Abduljabbar Al Koohiji, Mohammed Ali Hassan Ali, Abdulaziz Abul, Ebtisam Al Dallal and Leena Habib Qassim. The Women and Child Affairs Committee, chaired by Qassim, reviewed the proposal across eight meetings and passed a report to the Council. It was discussed in a sitting and then referred to the government. Bill The same committee also examined a government bill amending the 2021 Reform Justice for Children and Protection from Maltreatment Law. That text, attached to Decree No. 95 of 2024, is likewise with the government. These were among three pieces of draft legislation examined during the third sitting year of the current Shura term, which saw 16 committee meetings in total. The Youth Affairs Committee met five times and backed a plan to create a Sports Support Fund. Public purse The idea is to help finance private sector sporting ventures without dipping into the public purse. The proposal was submitted by Redha Ibrahim Munfaredi, who chairs the committee, along with Dalal Jassim Al Zayed, Ali Abdulla Al Aradi, Hesham Hashem Al Qassab and Ali Hussain Al Shihabi. It passed through the Council and has been handed to the government for drafting.
Gulf Insider
2 days ago
- Gulf Insider
Tamkeen Announces New Intake for 'Mashroo3i' Program
The Labour Fund (Tamkeen) announced the opening of applications for a new intake of its 'Mashroo3i' program, designed for individuals with innovative ideas who aspire to enter the world of entrepreneurship. The program aims to strengthen the Kingdom's entrepreneurial ecosystem and encourage Bahraini youth to transform their innovative ideas into successful ventures. Through this program, Tamkeen offers Bahrainis with feasible business ideas, idea-stage startups, or early-stage startups the opportunity to join an intensive advisory program focused on developing key entrepreneurial skills. The program provides participants with the tools needed to turn their business concepts into viable business models or successful ventures. This edition of the program will feature two tracks: one offering training in Arabic and another in English, which aims to maximize the participation and impact to a wider audience. On this occasion, Mr. Khalid AlBayat, Chief Growth Officer at Tamkeen, emphasized the importance of supporting entrepreneurship and continuing to launch initiatives that encourage the youth to take that leap as he states: 'We are proud of the positive outcomes Mashroo3i has achieved over the past years and look forward to even greater success with this edition. This program plays a pivotal role in providing tailored guidance and mentorship to help transform a business idea into a reality, under the supervision of experienced experts in entrepreneurship who accompany participants throughout their journey. These ideas are transformed into entrepreneurial ventures that contribute to creating job opportunities for local talent and positively contributing to the Kingdom's economic development.' The finalists will have the opportunity to receive Tamkeen's support to cover the products and services needed to launch their business ventures. The support will be disbursed in phases based on achieving certain business milestones. The areas covered include machinery and equipment, marketing and branding, technology, minimum viable product (MVP) design, and patent. Mashroo3i program aligns with Tamkeen's strategic priorities for 2025, which focus on enhancing the position and competitiveness of Bahrainis in the private sector, equipping Bahrainis with suitable skills for career development in the private sector, and prioritizing enterprise growth, digitization, and sustainability, and supporting the development of the ecosystem surrounding the labor market and private sector. Applicants interested in joining this edition of Mashroo3i can learn more and apply through Tamkeen's website: Also read: MPs Call On Tamkeen To Fund Kindergarten And Nursery Teachers' Pay
Daily Tribune
3 days ago
- Daily Tribune
From Gulf to global governance
Bahrain's entry to the United Nations Security Council has drawn praise from lawmakers, who described the vote as a clear nod to the Kingdom's conduct on the world stage. Shura Council Chairman Ali bin Saleh Al Saleh extended congratulations to His Majesty King Hamad bin Isa Al Khalifa and to His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, following Bahrain's victory in yesterday's ballot at the UN General Assembly in New York. The Kingdom secured 186 votes, granting it a non-permanent seat for the 2026 to 2027 term. Al Saleh said the result showed the standing of HM the King's approach abroad, firm, measured, and grounded in mutual respect. He called it part of a broader story, one built over years, in which Bahrain had carved out a place as a steady hand in matters of peace and security. The Shura head spoke of the country's path as one shaped by values rather than volume. Bahrain, he said, had long championed peaceful co-existence, freedom of belief, and neighbourly exchange. These were not imported slogans but principles rooted in the constitution and set out clearly in the National Action Charter.
