LEGISLATORS have called on the government to slash municipal fees for ‘special projects’ in a bid to attract more investments.
Currently, investors have to pay 100fils to 600fils per square metre for special projects depending on their size and purpose, which include commercial showrooms, services and manufacturing industries, large villas, apartments, buildings and garden houses.
Five MPs led by Ahmed Al Salloom have submitted the proposal to slash the levy, with Parliament and Shura Council Affairs Minister Ghanim Al Buainain referring it to Bahrain’s three municipal councils and the Capital Trustees Board for discussion.
The recommendation is already being reviewed by Parliament’s public utilities and environment affairs committee, which will submit its report in October.
“Lowering municipal fees will positively boost investments, whether on a local, regional or international level,” said Mr Al Salloom, who is also the Small and Medium Enterprises Development Society chairman and Bahrain Chamber board member.
“It will also spark more interest in residential or residence-oriented commercial projects,” he added.
“When business investors are forced to pay huge amounts as municipal levy for special projects, which are out of the ordinary either in size or nature, they would hesitate to continue here, especially as other countries in the region are trying to lure them with big offers.
“Municipal fees need to be balanced reasonably to ensure government coffers are not harmed while retaining the interest of investors.”
Mr Al Salloom claimed that the current fee system was unfair and ‘unconstitutional’.
“An investor pays municipal fees for a special project and then tenants pay the same amount for a part they would lease or rent in the complex. There has to be a one-point payment system,” he said.
The proposal has been unanimously approved by the Southern Municipal Council.
“An investor would end up paying BD100,000 to BD150,000 – or even more – as municipal fee for a project, depending on its size, and reducing it even by a small percentage would make a huge difference,” said council chairman Abdulla Abdullatif.
“The payments are thousands of dinars and not fils, if the total space is taken into account,” he added.
“Officials must study the feasibility of reducing the fee and it should happen soon as the country is opening up for business.”
Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa had earlier revealed that the country had attracted investments worth $1.1bn in 2022 with the amount expected to hit $2.5bn by the end of 2023.
Development projects worth $30bn are in the pipeline. Ten of them were completed last year while nine will be finalised by the end of 2023, Shaikh Salman added.
mohammed@gdnmedia.bh
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