Page 191 - Bahrain Gov Annual Reports (I)_Neat

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will revert to a Modified form or to the previous rate.
^part from the present necessity of increasing t!:e Khanchia

there is a real need of revising tlie charges on other cargo
as v/ell ss cargo and during this emergency period this
revision ’./ill be dealt with.
The increase v.ill undoubtedly cause a general outcry

anon 7 the merchants but it vail scarcely raise the cost of
living as for instance in the case of rice, which is the

largest import effected, the additional duty will only
add 2 annas to the cost of one bag of rice,
^t present it is proposed to apply the increase only to
bag cargo, which forms 70/o of the whole cargo a££ee but

• iien the rates are permanently revised the revision should
apply to ell sorts of cargo.
It is unfortunate that it should be necessary to increase

taxation but at the sane time it is a v/ell known fact that
Bahrain is more lightly taxed than any other State in the
>ilf. V'ith the exception of the customs duty and a local

I'-ouse tax in Manama! and Iluhcrrak which collected by the
Municipalities there are no local taxes whatever.
The revenue from other sources such as pearling licenses

etc, has been estimated it a correspondingly low rate owing
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to the expectation of another bad year, Under the present
conditions it would be rash to expect a larger income fron

these headings.
The item "Loans recoverable" includes sums lent to local
merchants and also ns 2500/- which was unfortunately lent

to a Persicn Shaikh, Sheikh Mohomed bin Ahmed Al-narami who
is now supposed to be in very serious financial difficulties,
it is in py opinion very doubtful whether this sum will be

repaid. The dangerous practice of lending money without
interest and without security will not be continued in
future.