Ebdaa Bank: Vat-free Services foster micro-enterprises

Chief Executive Officer of Ebdaa Bank-Bahrain Dr Khaled Al Ghazzawi praised the decision by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa in compliance with directives of His Majesty King Hamad to review tax measures. The decision to cancel fees on the services offered by 10 government departments was announced during the Cabinet’s weekly meeting chaired by HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Primer.

Besides, another 220 government services will be exempted from VAT for Bahrainis. Dr Al Ghazzawi noted the importance of the exemption of VAT on bank loans fees services, where customers have to pay this tax twice; when applying for a loan and with loan payments. “This decision will boost SMEs to overcome challenges and cutting their costs, which contribute to the economic recovery and stimulate investments and thus boost the national economy,” said Dr Al Ghazzawi.

“Through our accumulated experience in microcredit, we are fully aware of the importance of cutting SMEs and home projects’ costs, any small amount offered by these projects can be critical to their success or failure,” added Dr Al Ghazzawi.