Shura rejects plan to scrap property fees

TDT | Manama

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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.