The Chairman of the Board of Directors of the Chartered Financial Analysts Society in Bahrain, Ali Al-Mawlani, confirmed the government’s move to keep pace with the global trend of setting taxes on companies, that these taxes will provide additional income to the public budget, but in return their repercussions on small and medium enterprises and consumers should be monitored. Al-Mawlani pointed out that setting taxes on corporate profits will lead to an increase in government income, support the general budget, and support efforts towards fiscal balance. He also pointed out that it is important to take into account the effects of the corporate tax situation, as these taxes may lead to an impact on commercial activity in general, and it is necessary to take into account the institutions most affected by the tax, especially small and medium enterprises. And he indicated that it is necessary to take into account the increase in support for small and medium enterprises, especially national ones, which serve the national economy and constitute a qualitative addition to the economy. On the other hand, Al-Mawlani indicated that the impact of these taxes on the labor market must be taken into account, so that companies that employ citizens have programs that help their continuity in light of the tax situation. Finally, Al-Mawlani explained that there may be an impact from setting taxes on consumer prices, especially for some institutions whose profit margin is limited, which may charge this tax to the final prices, in order to maintain profitability, and therefore needs to have control and follow-up on prices. So that consumer price levels are maintained and at the same time there is no harm to enterprises.
