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Daily Tribune
a day ago
- Business
- Daily Tribune
Shura panel holds 36 meetings to scrutinise budget and tax bills
Thirty-six meetings kept Shura's Financial and Economic Affairs Committee busy during its latest legislative session, with much of its attention fixed on the 2025–2026 state budget and a series of economic bills. Eight of those sittings were held jointly with members of the Council of Representatives and the government, as the two chambers worked through the details of the upcoming national budget. According to figures compiled by the Council's General Secretariat, the committee examined two decree-laws, reviewed 11 draft bills, and assessed four sets of final accounts and financial statements. Sixteen reports were completed and forwarded to the Council Bureau for inclusion in public sittings. It also issued five economic and financial opinions related to draft legislation examined by other panels, as permitted under Article 21 of the Council's internal rules. Among the decree-laws reviewed was Decree-Law No. 19 of 2023, amending the legislation that established the Bahrain National Oil Company in 1999. The second, Decree-Law No. 11 of 2024, introduced measures for taxing multinational enterprises operating in the country. The committee's work on draft legislation included a proposed amendment to Article 1 of the 2006 law concerning the Future Generations Reserve Fund. It also reviewed Bahrain's agreements with the United Arab Emirates and Hong Kong to prevent double taxation and deter tax avoidance. Further bills addressed a revised agreement for the second stage of the Al Dur water transmission project, a draft law on taxing outward remittances from expats, and a consolidated proposal combining two versions of that same tax. Amendments to the 1987 Commercial Law were also considered, along with the proposed 2025–2026 budget law and revisions to the 1977 legislation on development bonds. The committee also studied a draft law ratifying Bahrain's agreement with the Islamic Development Bank to fund the new 400 kV Jasra Power Station, changes to the 2016 law on standards and metrology, and the proposed Secured Transactions Law. On matters of public finance, the committee reviewed the state's final accounts for the financial years ending December 2022 and 2023, along with implementation reports for the same period. It examined the Ministry of Finance's statements on budget transfers across government bodies. The audited financial statements of the Shura Council for 2024 were also reviewed, together with the 2023 financial report for the Unemployment Insurance Account, as approved by the Social Insurance Organisation's board. Two legislative proposals were also on the agenda. The first, submitted by Lina Habib, Dr Jehad Al Fadhel, Dalal Jassim Al Zayed, Hala Ramzi, and Hesham Al Qassab, sought changes to the 2012 Consumer Protection Law. The second, put forward by Dr Fatima Al Kooheji, Dr Mohammed Ali, Redha Faraj, Hala Ramzi, and Ijlal Isa Bubshait, called for the removal of Article 14 from the 1987 Commercial Law.
Daily Tribune
13-05-2025
- Business
- Daily Tribune
Tax strategy eyes BD130m revenue
Shura Council has retrospectively approved a law already in force since January, which imposes a 15 per cent tax on multinational groups operating locally. The measure is expected to raise BD130 million a year and brings the country into step with global rules on corporate profits. The vote, held yesterday, completes the legislative procedure for Decree-Law No. 11 of 2024, issued by the government as part of urgent fiscal measures. The law forms part of an international effort to prevent large firms from shifting profits to jurisdictions with little or no tax. It applies to multinationals with global turnover above €750 million a year. Thirteen foreign-headquartered multinational groups currently operate in Bahrain and fall within the scope of the tax. Model rules Financial committee rapporteur Dr Anwar Al Sada said the tax applies to multinationals based in Bahrain and follows the model rules set by the Organisation for Economic Co-operation and Development. He said the move ensures large businesses pay where they operate. 'This puts all economic activity under the same tax rules,' said Dr Al Sada. 'It plugs a gap and puts Bahrain on the map in terms of international tax cooperation.' Khalid Al Maskati, who chairs the Financial and Economic Affairs Committee, told fellow members the law follows the second of two OECD pillars. 'We're speaking of firms with reach and clout, this stops profits being parked in places with no tax and no scrutiny,' he said. First pillar He added that Bahrain had not signed the first pillar, which targets digital firms selling across borders, but had joined the second, which concerns the minimum rate large groups must pay once they cross a certain threshold. 'The aim is to stop tax revenue from slipping away to countries with no transparency,' said Al Maskati. ''By signing the agreement, we retain what is due to us. And with thirteen multinationals on the books, we estimate BD130 million a year.' Others welcomed the law as a way to bring in income without placing new charges on the public. 'This has a public benefit as well as a financial one,' said Fouad Al Hajji. 'It means the state can pay for schemes the public uses.' Dalal Al Zayed supported the legal footing of the measure and praised the National Bureau for Revenue for drafting its rules. Questions She raised questions about how tax evasion cases would be handled in court. 'Will these cases go to the administrative bench, or will there be a separate court to hear them?' she asked. She also sought clarity on when the right to prosecute such cases runs out. 'The wording says 10 years from the offence, but shouldn't it be ten years from when the act is uncovered?' She also pointed out that parts of the law refer back to 2023, despite it only coming into force in January 2025. Backdated calculations 'Does that mean there will be backdated calculations?' she asked. Responding during the session, Rana Faqihi, chief executive of the National Bureau for Revenue, confirmed that the court in charge of tax evasion cases is the Administrative Court. 'I just wanted to respond to a few of the queries,' she said. 'As for what was raised by member Dalal Al Zayed regarding the court handling these matters, the competent authority under the current system is the Administrative Court.'
