Bosses protest in tax stand-off

By TOM HANRATTY,

A STANDOFF between the government and the private sector continued yesterday, as businessmen staged yet another protest outside the office responsible for taxing them for their foreign staff. The sit-in outside the Labour Market Regulatory Authority (LMRA), Sanabis, lasted from 9.30am to midday.
It was the latest in a series of weekly protests that resumed last week and those taking part vowed to continue campaigning against a BD10 tax on their foreign workforce until the government backs down.
Businessmen had previously protested once a week for a month from mid-March to mid-April, but without success.
The exact number of business owners who took part in the demonstration was unclear, since several came and went throughout the course of the day.
A spokesman for the protesters claimed up to 500 people took part, but the figure was impossible to verify.
An electrical shop-owner, who was among the protesters, claimed the government was holding a gun to his head after threatening to cancel all the visas of companies that do not pay.
“It’s either pay this fee or die,” said the businessman, who did not wish to be named.
“They may as well hold a gun against my head. I employ eight expatriate workers, which means I now pay an extra BD80 every month.
“I only have a small business and BD80 is a big amount for me.
“To make that BD80, I cannot afford to just take it out of my pocket so that means I have to raise my prices – and when I raise my prices, I lose customers.”
The fees, which were introduced last July, are levied by the LMRA and go to Tamkeen (formerly the Labour Fund) to support training for Bahrainis and business development.
However, business owners claim the levy is destroying their livelihoods.
“Stores are closing everywhere because they do not have the money to survive,” said an irate businesswoman, who gave her name only as Zahb.
Another woman, known only as Fatima, questioned where the fees were going.
“I don’t know what this money is for,” she said. “This BD10 is too much of a headache for people. Small business owners like us don’t have enough money for this fee and we are forced to close down.”
The protesters made no attempt to enter the LMRA and accused officials of ignoring them when they previously requested meetings.
Carpenter Nader Alawi warned authorities that the problem would not simply disappear. “We will not stop until we are heard,” he said.
However, LMRA e-services and public relations manager Waheed Al Balushi warned the government remained equally adamant that the fees should be paid.
“We have no plans to negotiate with the business owners,” he said.
“We have asked them to bring us proof of businesses that have closed down. But as they have not done this, we are not saying any more on the subject.”
The majority of companies are understood to be paying the fees, but many continue to refuse. They are still being levied despite MPs voting in favour of freezing them before breaking for the summer.