emoodz.com » Rants: On the 1% Tax

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Rants: On the 1% Tax

Submitted by moodz on Wednesday, 20 June 20075 Comments

Majeed AlAlawi I don’t know how can I describe my feelings towards this guy, ever since the early days of the “National Project for Employment” launched under his guidance by the Ministry of Labor and consequently him being under the spotlights of local news articles and TV Shows, it doesn’t take a genius to know what is he truly made of.

Away from that, things have gone way off guard now; those are snippets from local newspapers quoting him on the 1% unemployment tax that will be applied this the coming month.

1. The project will be implemented in its due time this current month, the ongoing fuss about it I do not understand. Typically countries celebrate when such laws are implemented, and this is what we should do not the contrary.

وقال في‮ ‬تصريح لـ‮ »‬الأيام‮« ‬إن المشروع سينفذ في‮ ‬موعده المقرر الشهر الجاري،‮ ‬مستغرباً‮ ‬الضجة المثارة حوله‮. ‬وأشار إلى أن الدول عادة ما تحتفل عند تطبيق مثل هذا المشروع،‮ ‬وهذا ما‮ ‬ينبغي‮ ‬فعله هنا وليس العكس‮.

Via AlAyam

2. Now as a Muslim Scholar:
Deducing that amount comes from within the theory of interdependence which was encouraged in Islam, he adds: ” If we look at to modern countries, we will see that they impose taxes on all staff to finance such projects”

إن استقطاع ذلك المبلغ من صميم نظرية التكافل الذي حث عليها الإسلام، ويضيف: إذا نظرنا إلى الدول الحديثة فسنرى أنهم يفرضون الضرائب على جميع الموظفين لتمويل هذا المشروع.

Via Akhbar AlKhalij

3. And now as a Political Analyst:
The local campaign of repel and belligerence against the tax law is result of hidden political agendas and have no connection to the interest or demands of the citizens and the unemployed, pointing out that there are those who seek to undermine the political correctness project by using religion.

«حملة الطعن والمحاربة» التي يشهدها قانون التأمين ضد التعطل ناتجة عن توجهات وأهداف سياسية لا علاقة لها بمصالح المواطنين والعاطلين، مشيراً إلى أن هناك من يسعون لضرب المشروع سياسياً متذرعين بالدين.

Via AlWasat

I’d rather spare everyone my personal on the issue, or on the minister himself. Yet there is one thing that is worth looking into.

According to today’s AlAyam (Source) The Unemployment Fund is expected to collect a total of 36 Million Dinars in one year, and would reconsider the tax law after 5 years. On the other hand, as reported in today’s AlWasat (Source) the government of Bahrain has bought 9 UH-60M Black Hawk Assault Helicopters with a total cost of US $204 Million (That’s BHD 76.9) roughly 2 year’s worth of workers taxes.

*sigh*

5 Comments »

Ammar said:

On the topic of Dr. Alalawi; just because he is in a position of power doesn’t mean his words actually hold any true value. Similar to George Bush – just look up bushism on google. maybe there should be dr alalawism too

- 21 June 2007 at 11:37 am

Sara said:

In the US, one has to have actually paid into the scheme at one point in order to collect any funds and the amount they receive depends on how they have paid into it as well as their last level of earnings while employed. The scheme is well regulated whereas people must weekly submit their claims and provide evidence that they have actively been seeking employment (although there is still abuse of system). Furthermore, if one willingly resigns from his job they will most likely not be entitled to the benefit as it is only for those who have been laid off or terminated.

Being a foreigner, I personally do not have a problem paying into this fund that I will never avail benefit from, however if I see that the system is being mis-managed and abused, I will have a problem with it.

- 21 June 2007 at 2:15 pm

exclamation mark said:

I’ve read the article today in the ayam newspaper ,,, And I was really surprised by our intelligent minister’s stupidity !

How can he compare the pension fund with this 1% of my money where other people get use of it !

The pension and savings are for my own good ! Its what I’ve earned and will harvest when I retire ! But what about the 1% deduction ? At some point it might be a reason that people might not take work seriously , people get hired and then fired , why should they care if they’re being paid whatever the situation?

About takaful in Islam, people are not being forced to do so … So why force them now ?

If that money is for cases where I get fired, than its not a problem, why not that 1% be part of my pension account, but what justification would there be for someone who is orginally not employed ? Why should he be my problem ? Why does’nt the government step forward and be accountable for its actions and problems and pay for the unemployed from its own pocket since a great part of the unemployment problem is because of the government hiring foreigners as police and security ?

Or when the government is neglecting and ignoring the fact that it should enforce Bahrainization strictly … Today I still see companies run by Indians, and these indians – with my respect- are a majority …

- 21 June 2007 at 11:33 pm

moodz said:

الناس سواسية في الكرامة الإنسانية، ويتساوى المواطنون لدى القانون في الحقوق والواجبات العامة.
People are equal in human dignity, and all citizens are equal before the law in public rights and duties.

Quoted from Bahrain’s Constitution 2002, excluding the members of the representative and municipality councils and military personals is unconstitutional.

I personally have no problem even paying a larger share of my monthly income for the good of this country, given that it is all equally paid from the janitor to the king himself, that is obviously not the case here.

Let’s not even get into the idea of who will be regulating the entire thing and make sure the fund doesn’t go bankrupt as the pensions did earlier..

My mind still can’t comprehend how that happened.. eghh

- 22 June 2007 at 3:50 am

Ammar said:

I don’t mind the 1%, or even more if it contributes towards the unemployed in the right way. Not if it contributes towards the people who managed to get it with a wasta because they know someone (even though they are not needy), or if they have other income or money coming in from other places, or if perhaps they are technically unemployed but their parents own more money than you and I can ever wish to have.

I’m not sure how this whole process will work. That is, if all the money actually makes it to those unemployed people before being semi-hijacked on the way there. Taxes are a normal part of a developing society and we need to accept that it will happen, and although unlikely, I hope the tax funds will actually go to the people they were originally intended for.

- 28 June 2007 at 12:11 pm