Capital Municipality Wins BD 25,000 in Back Taxes from Shop Occupier

TDT | Manama
Email : editor@newsofbahrain.com

The High Administrative Court has ordered a shop owner to pay BD 25,000 in back municipal fees covering a seven-year period from 2015 to 2022.

The Capital Municipality filed the lawsuit against the company occupying a shop in a prominent capital complex. The municipality claimed the company failed to pay municipal fees totaling BD 25,000 despite repeated notifications. The lawsuit sought payment of the outstanding fees plus court costs.

The court's decision highlighted that municipal revenue is derived from fees collected for the use of facilities and services managed or overseen by the municipality.

The court emphasised that the responsibility for paying municipal fees rests with the occupier of the property, regardless of whether they are a citizen or resident, unless a different agreement exists between the owner and occupier. Monthly fees are calculated at 10% of the actual monthly rental value as determined by the municipality.

The court cited the Civil and Commercial Evidence Law, stating that the creditor must prove the debt, while the debtor must prove its settlement. The court noted that the defendant failed to appear in court or present any defense, despite proper notification. Given the evidence presented and the defendant's failure to contest the claim, the court ruled in favor of the Capital Municipality, ordering the payment of BD 25,000 plus court costs.