Parliamentary Committee Seeks Exempting Animal Feed from VAT

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

The Public Utilities and Environment Committee of the House of Representatives has begun formulating its recommendations regarding the recent flour price increase. The committee plans to present these recommendations to the executive branch for discussion in the coming weeks, coinciding with the postponement of Bahrain Flour Mills Company's decision to raise prices on certain flour products.

Committee members, including MPs Hamad Al Doy, Bader Al Tamimi, Mohammed Janahi, and Mohammed Al Balushi, have confirmed that they are actively discussing and developing a range of proposals aimed at bolstering food security in the Kingdom of Bahrain. They emphasise the critical importance of this issue and its priority during the upcoming parliamentary session.

The committee members highlighted key proposals, including exempting imported animal feed and its derivatives from value-added tax (VAT) and reducing port rental fees for companies importing these feed types. These measures aim to strengthen food security and support livestock breeders and traders.

They expressed their commitment to supporting the executive branch in implementing plans, programmes, and initiatives to enhance food security in Bahrain, in line with the directives of His Majesty King Hamad bin Isa Al Khalifa and the support of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.

They stated that the committee plans to hold further meetings with relevant government agencies and livestock breeders to discuss the recent decisions made by the Bahrain Flour Mills Company, including the postponement of the price increase on certain unregulated products. The focus is on exploring alternative solutions to avoid price hikes, with the committee emphasising that the postponement is a temporary measure. They are actively working towards a complete reversal of the decision and protecting the financial well-being of citizens.

"The committee has already met with livestock breeders to hear their concerns and demands, as well as the potential negative consequences of a future price increase. The breeders have called for facilitating the importation of feed, opening the market to other local companies to produce animal feed," they stated.

It's worth noting that the Bahrain Flour Mills Company had last month announced a three-month postponement of its planned price increases for its products, following a joint meeting between legislative authorities, government representatives, and company officials.

This came in the wake of a wave of price increases that has hit popular restaurants and cafeterias, including those specialising in samosa, as businesses cite rising flour prices. Some establishments have announced increases in the price of "jibati," a popular flatbread, in both red and white varieties, with signs posted to inform customers of the price adjustments.