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Cabinet endorses 50% cut on levy for SMEs

May 14, 2012
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HRH Prime Minister Prince Khalifa bin Salman Al Khalifa with Deputy Premiers presiding over the weekly cabinet meeting
The Cabinet meeting chaired by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa at Gudaibiya Palace decided to give 50% cut on LMRA monthly levy from BD10 to BD5 per month.

The cabinet decided to cut down the monthly fees levied on the first five expatriate workers in small enterprises from BD10 to BD 5.

However, if the number goes above five, the fee will go back to BD 10. The decision will be effective from July 1, 2012 and will benefit more than 41000 firms representing 78% of the total number of companies employing expatriate workers in Bahrain.

The council stressed that the implementation of the National Consensus Dialogue’s visions as well as the recommendations of Bahrain Independent Commission of Inquiry (BICI) and the constitutional amendments are stories of success and milestones in the history of the kingdom.

These achievements shall always be remembered as they are new accomplishments of His Majesty King Hamad bin Isa Al Khalifa and the dividends of his reform process, the cabinet heard.

The council was informed about progress in carrying out BICI recommendations. The Minister of Justice, Islamic Affairs and Endowments, who is in charge of following up on that, presented the cabinet with a briefing.

The ministerial council stressed the need to continue carrying out all the reforms included in BICI recommendations, directing ministries and governmental institutions to fully cooperate with the follow-up body in charge.

Marking the 14th GCC consultative summit, the cabinet asserted that regional challenges require more GCC cooperation to achieve the aspirations of the GCC people for security, stability and growth.

This objective can be attained by enforcing the initiative of the Custodian of the Two Holy Mosques which called for a transition from the cooperation phase to Union, the council affirmed expressing hope the consultative summit would be a launch pad to take executive steps towards that end.

HRH the Prime Minister lauded the outcome of the recent visit paid by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Deputy Supreme Commander, to the USA, underlining its importance in further cementing relations of friendship and cooperation between both countries.

The cabinet also hailed the visit of Thai Premier Yingluck Shinawatra and her accompanying delegation to Bahrain, praising growing cooperation between the two kingdoms.

The ministerial council approved a scheme enabling Bahrainis who have worked effectively for at least 25 years to become eligible for a maximum five-year bonus.

Employees having reached the normal age of retirement or seeking early retirement can benefit from the scheme.

The procedure will also apply to employees who may be sacked for non-disciplinary reasons or laid off.

Employees who resign for health reasons, or in order to look after people with special needs are also eligible.

The benefit programme will also include Bahrainis who resign voluntarily on reaching the age of 50 years.

The session instructed the Civil Service Bureau to undertake the necessary measures in coordination with the Finance Ministry and the General Organisation of Social Insurance.

The cabinet discussed proposals to weather the effects of a volatile global oil market and was briefed about the recommendations of the ministerial committee for financial and economic affairs in this regard. It tasked the committee to study alternatives to diversify governmental revenues.

The council approved reforming the National Anti-Smoking and Tobacco Committee under the chairmanship of the Health Minister and taking into its membership representatives from concerned parties.
It also approved a proposal by the Representatives Council to set up car parks in East Riffa.
The cabinet approved a proposal to overhaul the Industry and Commerce Ministry’s Consumer Protection Directorate to cope with the growing number of commercial outlets and the need for a comprehensive supervisory system to control prices as well as commercial fraud and monopoly.

The council also approved and referred to the Representatives Council the Work Ministry’s reply on the final report of the parliamentary probe panel regarding financial and technical irregularities during the construction of King Hamad University Hospital.

Tags: CabinetSMEs. LMRA Levy
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