TDT | Manama
Daily Tribune – www.newsofbahrain.com
Forget about camel caravans. The hottest topic in Bahrain right now is foreign currency. Congress’ sudden move to send taxes overseas has sparked intense debate, with supporters hailing it as economic diversification and critics warning it could turn Saudi Arabia into a fiscal mirage. There is.
The newly passed Foreign Financial Transfer Tax imposes a 2% fee on remittances, injecting a potent cocktail of hope and fear into Bahrain’s economy. Supporters hail the tax as a lifeline that will wean Saudi Arabia off the fickle nipples of oil and diversify its revenue.
“This country needs more than oil!” shouted Mohamed al-Alaywi, his voice echoing the emotions of many. But skeptics fear Bahrain could turn from a financial oasis to a mirage, scaring away foreign investors and paralyzing competitiveness. Bahrain’s financial guardian, the Central Bank, has issued a chilling prophecy.
They warned that the tax could be the result of an exodus of international institutions, leaving ghost towns without foreign capital or skilled workers. It can even send money underground and create a shadow economy that benefits no one. But in the midst of the economic turmoil, there are whispers of a new storm brewing.
Should Bahraini workers really fear losing their jobs to foreign hands? The data paints an alarming picture, revealing that Bahraini salaries are often well below foreign salary levels. So is comprehensive tax the real enemy, or should we focus on specific areas where foreign expertise can replace local talent? As Bahrain teeters on this economic precipice, one thing is clear: generalizations are a mirage in this financial desert.
Nuanced policies tailored to empower local people through training and opportunities are the necessary compass to navigate this crossroads. Only then can Bahrain pave the way to a prosperous future where foreign investment and local prosperity go hand in hand under the Bahraini sun.