MPs support traffic fee exemptions for citizens despite treasury concerns

TDT | Manama

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Traffic fee exemptions for citizens approved by MPs have drawn a stark warning from the General Directorate of Traffic, which fears the move could rattle Bahrain’s finances and undermine nonoil revenue streams.

The proposal, spearheaded by MP Dr Ali Al Nuaimi, calls for scrapping fees for services provided by the General Directorate of Traffic, aiming to ease financial pressures on households.

Dr Al Nuaimi argued that the measure would allow citizens to access essential licensing and traffic services without the extra burden of fees.

He said this would not only lighten the load on family budgets but also encourage better compliance with road laws, benefiting the public at large.

Caution

Yet, the General Directorate of Traffic has urged caution. In a letter to Parliament, it warned that the fee waivers could destabilise the budget and hinder the Fiscal Balance Programme, a cornerstone of Bahrain’s economic framework.

It stressed that the fees are not a profit-making venture but are used to cover the costs of providing traffic-related services.

Expenses

“The current fees ensure we can meet the expenses of delivering these services,” the directorate said. “Eliminating them would place undue strain on the treasury and disrupt the steady flow of non-oil income.”

The Ministry of Interior also weighed in, arguing in a memo to Parliament that the fees represent payment for specific services, such as inspections and licensing, rather than broad societal benefits.

It explained that these fees are essential to maintaining service quality and covering operational expenses.

Proposal

Despite the warnings, Dr Al Nuaimi remained steadfast in his defence of the proposal, describing it as a necessary step to support citizens and ensure they can access vital public services without worrying about additional costs.

The debate reflects a broader tug-of-war between easing public expenses and ensuring fiscal stability.

While the measure is likely to be welcomed by many, its long-term effects on Bahrain’s budget remain uncertain.