Bahrain Parliament passes controversial Zakat and Tax law for companies

TDT | Manama                                                         

The Daily Tribune – www.newsofbahrain.com

Yesterday’s Bahrain Parliamentary session ignited a fiery debate on a proposed law that would impose taxes and regulate Zakat on commercial companies.

While the committee endorsed the proposal, sparks flew when MP Zainab Abdulamir, head of the Finance Committee, unexpectedly requested its withdrawal for further study, citing the lack of government feedback.

“If you demand the withdrawal,” thundered MP Mohammed Al Husseini, his voice pointed at Abdulamir, “then you are accountable to God for that.” The heated exchange prompted intervention from the Council of Representatives Speaker, His Excellency Ahmed bin Salman Al Musallam.

Recognizing the need for deeper analysis, he urged caution: “This matter requires thorough study, including consulting government entities and examining similar proposals like the corporate tax.”

He further added that imposing Zakat on non-Muslim companies wouldn’t be appropriate, reminding Al Husseini, “We’re not in a religious debate. And what did you mean by saying Zainab is accountable to God? Is she the only one?” The proposed law details the calculation of Zakat for companies, setting it at 25% of the tenth of their net Zakat assets for the Hijri year budget or 2.577% for the Gregorian year budget.

While the law ultimately passed, the fiery debate exposed lingering concerns. Some, like Abdulamir, advocate for more time to ensure the law’s effectiveness and fairness. Others, like Al Husseini, prioritize swift implementation, even if it means sacrificing further scrutiny.

With the law now in place, the question remains: will it effectively balance fiscal objectives with ethical considerations, or will it spark further controversy in the months to come? Only time will tell.