Tamkeen cancels 4% training levy on private firms

Tamkeen has abolished the annual 4% training levy imposed on private companies with more than 50 employess, chairman and acting chief executive Shaikh Mohammed bin Essa Al Khalifa has announced.

Shaikh Mohammed said that the decision to withdraw the annual levy will not in any way effect the programmes of Tamkeen. He assured that the agency has the ability to handle the additional challenge. “We know that the demand is more than the revenue. But, as I look at it, this is a good problem to have. We have a budget of BD75 million. We will continue to work with the private sector to identify its training needs and provide the relevant training solutions for those needs.”

Following HM the King’s Royal decree to transfer the responsibilities of the Supreme Council for Vocational Training to Tamkeen, the latter has emerged as the single authority in Bahrain to offer all entrepreneurial training programmes. 

“Tamkeen has restructured and re-launched the entrepreneurship support programmes. We are well on our way to make the programmes more customer-centric, and during the course of this year, almost 1,000 companies have benefited from it,” said Shaikh Mohammed.

First Vice-Chairman of Bahrain Chamber of Commerce and Industry Othman Alrayes lauded the decision to transfer the responsibilities of the Supreme Council for Vocational Training to Tamkeen. “The merging of government institutions is seen as a very wise step to consolidate efforts and enhance efficiency. The merging is expected to enhance the vigour of the national economy and streamline the operations of the private sector,” he said.

Meanwhile Shaikh Mohammed said that the agency had conducted a survey among private companies to gauge the success of the enterprise support programmes. He said that 70% of the respondents were happy with the programme and said it served their needs, while start-up companies and large companies said the programme needs further improvements.

He also said that a Consultation Forum will be conducted in the first week of November, where the feedback from all stakeholders and public will be sought on the future plans.

Explaining about Tamkeen’s work, Shaikh Mohammed said that the agency has launched an IBAN method of payment for beneficiaries and service providers on August 1. With the electronic payment system, the processing time has been cut down to just 14 days.

Building on the success of the first edition of the Bahrain Award for Entrepreneurship, Tamkeen will the launch the second edition of the award on November 16. The award function will be held in March 2016. Also, the second edition of the Bahrain Shopping festival, in conjunction with BCCI and the Tourism Authority, will be held from December 24 to January 23.

Talking about the general economic scene, Shaikh Mohammed said that Bahrain has one of the well-diversified economies in the GCC. With more and more development scheme coming on stream, there will be plenty of opportunities for SMEs and private sector players.