VAT suspension ‘will help tackle inflation’
AN urgent proposal to temporarily suspend the 10pc VAT and double monthly anti-inflation allowances for Bahrainis to cope with inflation was presented yesterday.
The move by 10 MPs, spearheaded by Mahmood Al Bahrani, comes as a result of increased global prices and salary stagnation.
“The 10pc VAT is imposing a burden on everyone in the country with prices of commodities already on a rise due to the ongoing situation with Covid-19 and the Russian-Ukrainian conflict,” he said, claiming that anti-inflation monthly allowances of BD55, BD77 and BD110, given to families with incomes below BD1,000, “are not helping much”.
“In reality, prices, in my opinion, have at least quadrupled with normal incomes remaining unchanged for the past 14 years when civil servants last got a pay rise,” said Mr Al Bahrani.
“Pay in the private sector is also low. Any planned pay rises or bonuses have not been forthcoming as companies continue to struggle because of the pandemic.
“Inflation has hit the world hard and today’s prices are threatening global economies.”
The proposal will be forwarded by Speaker Fouzia Zainal to the Cabinet to review.
Source: https://www.gdnonline.com/Home/Details/1072384
