Bahrain MP propose fee on foreign remittances

Manama : An MP has proposed imposition of a new fee on foreign remittances “as part of the ongoing efforts to save the Bahraini economy”.

MP Jamal Dawood submitted the proposal to the House of Representatives’ Speaker’s office recently, instructing to impose BD1 fees on remittances below BD300 and BD10 for all money transfers exceeding the amount of BD300.

“Because of the continually deteriorating economic conditions in the past few years, such as the drop in the international crude oil prices, Bahrain’s economy has been impacted hard. This law, if implemented,  would pump at least BD90 million into the state exchequer, helping it to recover from the effects of the oil price fall,” Dawood told DT News yesterday, justifying his proposal.

“BD1 isn’t a big burden on any expat’s personal budget. The number of expatriates in Bahrain is close to one million now. This small amount taken from each one of them while remitting money abroad would sure contribute to the revival of the national economy,” Dawood said.

When asked about the growing general feel of “being over-burdened by fees” among expatriates in Bahrain, the legislator said, “Citizens and residents should stick together during these hard times to maintain the Kingdom’s economic pain. All should support the economy and work to protect. These trifle amounts will not impact them much, but would greatly serve the national economy.” 

MP Dawood explained that the bill, as per the council’s bylaws, would be referred to the Legislative and Legal Affairs Committee and the Financial and Economic Committees in the council before the House could vote on it.

A similar proposal was passed by the council last year, despite several reservations from some MPs and the Central Bank of Bahrain. The previous proposal stipulated charging 0.5 to one per cent of each remittance made from Bahrain. However, it reached nowhere as the second branch of the Legislative Authority, Shura Council, rejected it. Recent data have showed that around BD2.5 billion is annually transferred from Bahrain by expatriate workers abroad.