*** Expats face the music over subsidy cut, road tax move | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Expats face the music over subsidy cut, road tax move

Bahrain, like all other GCC countries, is trying to survive the brunt of fall in oil prices. 

For a country as reliant on hydrocarbon income as Bahrain, the continuing slide in crude prices is driving the need for additional income streams. And with the government estimating a 60 to 70 per cent decline in oil revenues so far this year, there is a clear sense of urgency to diversify revenues.

So, the need to cut several subsidies and implement new taxes is inevitable. Agreed. However, when the whole burden is shifted onto the shoulders of expats alone, that seems quite unfair. 

DT News had reported on several negative impacts of removing meat subsidy for expats, like butchers in Bahrain leaving the country as the meat business had come to an almost standstill. 

Negotiations are now underway between Bahrain MPs and the government to scrap electricity and water subsidies for expatriates and big businesses.

To make matters worse, MPs are proposing to charge expat drivers in Bahrain an annual fee of up to BD100 for using public roads. Bahrain’s leadership, the government and many officials have repeatedly highlighted the role expats have played for generations in the building of a nation as great as Bahrain.

While it is agreeable that a country at times of economic challenges must take certain drastic steps, is it justifiable to let only expats shoulder the burden?

What does the Bahrain people think of this “discrimination” against the expats?

DT News asked the following question on its website: Should expats alone face the burden of subsidy removals and new taxes to help Bahrain withstand drop in oil prices? Response from the readers: 

Zeeshan Shafqat 

The imposition of fee for using roads, specifically on expats, is totally discriminatory. And, I think it is also against the ideology of the local people here. If it has to be imposed, then it should be imposed on everyone, including the GCC nationals.

Reaves

As this was predicted, in times of crises, pressure would be on expats. Introducing BD100 road usage fee, more taxes and removing electricity subsidy will see low-income workforce disappearing from the Kingdom.

Violet

It’s unfair. Expats are building this country and this is how the country repays them. Very sad. 

Vinod

Expats here are not to earn a lot. The income is same as in their own countries. The only differences are the taxes, which are almost 35 per cent of the income. If the government is putting taxes this way or that way, the loss will be passed automatically on to the government only.  The buying power will go down. Already, the expats are bearing the cost of LMRA visa charges and monthly fees. Directly or indirectly that affects the income of the expats. Most of the people who left Bahrain in the last two years are in Oman or in Qatar. Working on even less salaries, but saving more. Putting every pressure on the people who are here to work for this country is not a good suggestion. They have example of meat subsidies issue. Meat business will not come back for the next two years, where it was flourishing earlier. Officials should keep off such experiments. This is a very small society with very fast-reacting economy. Rest is on the decision-makers.  

Waqar Ali

Shifting all burden on expats is completely unfair. MPs sitting in Parliament should know that expats are spending average 60 to 70 per cent of their income in Bahrain only. We are paying rent for flats owned by Bahrainis only. We buy clothes, medicines etc. and all these businesses are directly or indirectly related to Bahraini nationals. We understand that this is a tough time for the GCC economy and we are ready to share some burden, but please don’t put everything on us. 

Shakeel Ahmed 

 Instead of creating more job opportunities in the manufacturing sector, the MPs are seeking an easy way out. The Kingdom should focus on manufacturing so that it can survive. The recession does not end here. Oil and gold prices are still falling in the international market. Increasing the prices or raising fees is not a viable solution. Appraisal of salaries is also needed, especially in the private sector. The private sector has been continuously ignored for the past 17 years. More wise options should be explored. Like, decent raise in wages in the private sector and a minimum wage just like in the US and UK where anybody can survive and economy goes parallel with the expats. It is not advisable to extract more money from the expatriates, who are putting big efforts in building this nation.

Robert Davies

Well, the reason that the oil prices have fallen is because Saudi wants to close the American fracking industry. At any moment, the Saudi government reverses its policy, the prices would bounce back. The reason why so many people accept low wages in these countries is because there is no tax and there are subsidies. If they are not in place, then there is nothing to attract the expat labour force here and workers will simply move out. It is unacceptable that after so many ‘fat’ years, expats are being penalised because of one year’s downturn. 

Nabeela

Unfair

 

Crystal

If the government decides that all expatriates pay more and shoulder the economical situation, then all expatriates will start moving out and this will result in the downfall of Bahrain’s economic status. 

Ahmad

Expats help build the country and are paid for that. Now, times are bad and the same expats have to understand the situation. So, the butchers and everyone else have a choice. And there is no force on them to make the right choice. 

Sabreen Khan

I think this is totally unfair. Bahrain comes under a position where it’s easily affordable for the expats to live in. Imposing all these new laws will be a big torture for the expats and a majority will have to leave this island. I hope Bahrain will be the same as it was before.