Expat remittances in Bahrain may face a 2 per cent tax after MPs gave their backing to a revised proposal today. The original plan outlined a tiered system, imposing a 1 per cent levy on transfers below 200 dinars, 2 per cent on amounts between 201 and 400 dinars, and 3 per cent on sums exceeding 400 dinars. It also offered exemptions for transfers tied to investment agreements, capital movements, and certain cases under Bahrain’s tax framework. However, MPs have now opted for a simpler approach—a flat 2 per cent rate, aimed at making it easier to enforce. The proposal has already faced resistance. In January 2024, the Shura Council rejected it over fears that the tax might push expats to rely on informal transfer methods, such as black markets or cryptocurrencies, potentially destabilising Bahrain’s financial system. Since its first submission in February 2023, the bill has undergone multiple revisions to address these concerns. Pushed forward by Lulwa Al Rumaihi and backed by Dr Muneer Seroor along with three other MPs, the bill is part of a broader effort to reduce Bahrain’s dependence on oil revenue. Supporters argue that taxing the millions of dinars sent abroad each year could help […]