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Finance Ministry Rejects Parliamentary Project to Compensate Low-Income Persons for VAT, Says Goes against Constitution

2019-05-06 - 5:46 p

Bahrain Mirror: The Ministry of Finance and National Economy rejected a parliamentary project to compensate citizens of low-income wages by reducing the effects of the value added tax (VAT), while the finance committee of the House of Representatives approved the proposal.

In its response, the Ministry explained that it is not possible to discriminate between individuals when it comes to taxes "or else there would be a violation in the constitutionality protected equality principle, as the prices of goods or services are specified without considering the taxable person; that is, the purpose of imposing or exempting from any tax is related to the commodity itself, and not the beneficiary person".

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