The Shura Council rejected a proposal put forth by the Bahraini Parliament to impose a 2% tax on foreign financial transfers for expats during its session yesterday.
Dr. Bassam Al-BinMohammed, Chairman of the Financial and Economic Affairs Committee, outlined the numerous adverse effects of the proposed law on the economy and society. Citing conflicts with international agreements and constitutional laws in Bahrain.
He highlighted concerns that implementing the 2% tax could result in a downturn in legal foreign financial transfers, potentially leading to an uptick in illicit money transfer activities. He cautioned that this might encourage money laundering practices and the use of cryptocurrencies.
In conclusion, he urged a reevaluation of the proposed law. Recommending modifications that align with constitutional and international standards to mitigate potential negative impacts on Bahrain’s economy and society.