Latest news with #PropertyRegistrationLaw
Daily Tribune
28-04-2025
- Business
- Daily Tribune
Shura rejects plan to scrap property fees
The Shura Council has thrown out a plan to waive the 2 per cent fee on first-time property transfers and cut charges on gifts worth above BD50,000. The decision came yesterday after warnings that the changes would strip the treasury of income and leave the door open to misuse. A similar plan was rejected during the fifth legislative term. Those backing the bill said the move would ease the burden on families trying to buy or pass on a home. Housing ladder They argued that scrapping the fee for first-time residential property transfers, and for gifts above a certain value, would make it easier for Bahrainis to step onto the housing ladder. The draft, drawn up by the Council of Representatives, would have amended Article 59 of the Property Registration Law. It aimed to offer Bahrainis a one-off exemption from charges when registering or transferring a home. But the Public Utilities and Environment Committee, along with the government, pushed back. Goal They said the goal behind the bill was already being met. Today, Bahrainis who take housing loans from Eskan Bank are already spared these fees, up to the amount of their loan. That exemption depends on the person's financial standing, not the type of contract. Speaking during the session, committee rapporteur Ali Hussain Al Shehabi said the law already gives exemptions to those buying homes. He pointed out that a second paragraph added to Article 59 spares buyers from paying fees in certain cases, helping those most in need. Warning Al Shehabi warned that handing out further exemptions would drain the public purse at a time when Bahrain depends heavily on money raised outside the oil fields. That cash, he said, is steered towards running services and building projects to lift living standards. Al Shehabi also reminded the chamber that revenue estimates had already been locked in for the next two financial years.
Daily Tribune
27-04-2025
- Business
- Daily Tribune
Shura Council to Review Key Draft Laws on Power Station Funding and Property Registration
Two major draft laws will be reviewed by the Shura Council today, with committees recommending approval for one and rejection of the other. The Financial and Economic Affairs Committee has endorsed a draft law ratifying Bahrain's agreement with the Islamic Development Bank to finance the construction of the New Jasra 400kV Power Station, under Royal Decree No. 86 of 2024. The project aims to strengthen Bahrain's electricity network, meet rising demand, and maintain high service standards. The committee emphasized that the law aligns with broader national efforts to ensure reliable power and water supplies, thus supporting the overall quality of life. Under the financing agreement, the Electricity and Water Authority (EWA) will be responsible for repayment. If EWA fails to meet its obligations, the Government of Bahrain — acting as guarantor — would step in. However, the committee reassured that EWA has a strong record of fulfilling its financial commitments. Separately, the Public Utilities and Environment Committee has advised against amending Article 59 of the 2013 Property Registration Law, which proposed exempting low-income citizens from property registration fees when purchasing homes. While the committee supported the principle behind the proposal, it noted that similar support is already provided through existing legislation. It also warned that fee exemptions could reduce non-oil revenues — a vital source for funding public services and development projects — especially as Bahrain works to safeguard financial stability under its 2025-2026 budget plans. Meanwhile, today's Shura session will also feature a question from Dr. Fatima Abduljabbar Al Kooheji directed at the Minister of Education. Dr. Al Kooheji is seeking details about the ministry's initiatives to prepare students for marriage and family life through educational programs. The minister's written response is scheduled to be delivered during the session.
Daily Tribune
25-04-2025
- Business
- Daily Tribune
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.
