Thursday, June 28, 2007

Bahrain Imposes Income Tax of 1%

Bahrain, a small country in the Middle East, enjoying the harvesting results owing to high oil prices has just imposed an income tax of 1% on its citizens. Only 1%?

And just this 1% income tax has triggered the following:-
* Workers in Bahrain are up in arms
* local newspapers inundated with letters protesting the scheme
* country’s trade union federation, the General Federation of Workers' Trade Unions in Bahrain, is reportedly unhappy with the situation

Bahrain is the first GCC nation to impose a tax on working folks. Do you need this uproar? Kuwait is to follow next. Working folks in certain countries are being taxed as high as 30%. This tax increase has something behind as well - it exempts military personnel and local and national elected officials. One thing that the public sector workers may not know yet - part of the agreement was to increase their pay by 15%. Wow!!!! A 1% income tax justifies a 15% pay increment?

Furthermore this income tax revenue would be used for at increasing employment opportunities for nationals and, as well as providing training programmes for job seekers, includes incentives for companies to employ Bahraini citizens such as additional financial and technical and to to fund unemployment benefits for its citizens. Selfish working folks?

Reading: Bahrain ministry defends salary tax - Arabian Business
Tags: Bahrain, Income Tax, Middle East, Gulf Cooperation Council, GCC, Gulf, Kuwait, Unemployment Benefits, General Federation of Workers' Trade Unions

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2 Comments:

Anonymous Anonymous said...

Perhaps coincidentally, 1% was the rate when the US federal income tax was enacted in 1913... and look where that got us. It's a slippery slope. Bahrain is a nation whose #1 revenue source is oil, and oil prices are at an all-time high. I can certainly understand why their citizens don't want to start down the path of income tax.

28 June, 2007 12:09  
Blogger Johnny Ong said...

there are pros and cons but a big protest over 1%???

29 June, 2007 00:51  

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