Page 217 - Records of Bahrain (4) (ii)_Neat

State finances, 1928-1932 519

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will rovort to a modified form or to the previous rate.

Apurt from tho preoent necessity of inoreusing the Khnnohio
there is n real need of revising the charges on othor oargo
as well ub bcargo and during thio emergency period this
revision will be dealt with.
The inorouae will undoubtedly cause a general outory
among the merchants but it will scarcely raise the oost of
living an for instance in the oaao of rice, which is tho
largest import affected, tho additional duty will only
udd 2 annas to tho coot of one bag of rice.
At preoent it is proposod to apply tho inorecoo only to
bag oargo, whioh forms 10% of tho whole ourgo af£«« but
when the rates uro permanently revised the revision should
apply to all norto of cargo.
It is unfortunate that it ohauld be nooessary to increase
taxation but at the onrae time it i8 a well known foot that
Bahrain io more lightly taxed than any other State in tho

Gulf. 'Vith tho exooption of the oustomn duty and a local
v &
houno tax in Mnnamah and Uuhnrrak whioh collected by the
Municipalities thero are no local taxes whatever.
The revonuo from other sources ouoh os poarling lioenses
eto. has been estimated at a oorrenpondingly low rate owing
to the expectation of another bed year. Under the preoont
conditions it would be rash to expect u largor income fren
theoe headings.
The item "Loans PoQoverable" inoludos sumo lent to local
morohonta and also K* 2500/- whioh was unfortunately lent
to u Peroian Shaikh, tth&ikh Mohomed bin Ahmed Al-Hnrajai who
in now suppooed to be in very ooriou8 finanoial difficulties*
It is in my opinion vory doubtful whother this sum will be
repaid. The dangerous praotioe of lending money without
interest and without aecurity will not be oontinuod in
future.