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BAHRAINI owners of properties could be exempt from paying infrastructure levy for demolition and reconstruction, if a parliamentary proposal is approved.
The 2015 Infrastructure Cost and Development Law already includes exemptions for properties owned by Bahrainis in current and new urban projects, extending to first-degree relatives.
Parliament’s Public Utilities and Environment Committee has reviewed the proposed amendment to exempt properties set for demolition or reconstruction.
The GDN previously reported that under the law, a levy of BD12 per square metre is charged on all developments in a bid to fund infrastructure projects such as roads network, sewerage systems, electricity and water schemes.
The tax aims to support the state budget by collecting money from property developers to fund infrastructure in under-developed areas.
The levy is also applied on property owners who tear down their run-down homes and rebuild new larger residential dwellings.
“There has been an increasing financial burden on citizens because the current law is inclusive and doesn’t differentiate between various construction cases,” said the committee in its written response.
“This amendment takes into account the social reasoning behind construction by citizens.”
In a written response to Parliament, the government however urged a rethink on the proposed amendments while Parliament’s Public Utilities and Environment Committee recommended approval.
The GDN previously reported that the Shura Council quashed new amendments that would have led to the country’s infrastructure levy being relaxed.
The three sets of amendments rejected include a cap on collected tax and exemptions on new residential projects, places of worship, societies and cemeteries.
MPs are also set to take a vote on several proposals that were postponed from previous sessions.
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