Page 327 - Bahrain Gov Annual Reports (III)_Neat

47

The Muharraq Municipality was formed in 1346 (1927) without opposition, its constitution
was based on that of Manama but its council was smaller and its responsibilities and revenue were
less than those of Manama. The first President was Shaikh Abdulla bin Isa but when he took over
the presidency of Manama he was succeeded by Shaikh Abdulla bin Hamed who still presides over
the council.

From 1353 (1934) the Government made a contribution to the Muharraq Municipality for work
in Hcdd, the third largest town in Bahrain, which was administered by a municipal sub-committee
which included two co-opted members from Hedd. In 1364 (1945) a regular municipality with a
council of nominated and elected members was set up in Hedd under the presidency of Shaikh Rashid
bin Khalifah, a minor member of the Ruling Family. Arrangements are now being made to form a
municipality in the two Rafaas.

Municipal Finance.—Municipal revenue is derived from a tax on houses and shops, a subsidy
from the Government, half of the proceeds of the vehicle tax which is collected by the State and various
municipal fees and licences. When the first municipality was formed, in Manama, most of its income
came from a special tax which was collected on all imports into Bahrain known as the Baladiya tax,
this was found to be unsatisfactory and a Government subsidy was substituted for the import tax.
Municipal councillors have always shown the greatest reluctance to impose any form of direct taxation
though willing to approve of indirect taxation, for the benefit of the municipality, especially if by so
doing the existing house and shop tax could be done away with, but the Government contends that
municipalities should rely chiefly on municipal income and should not be so heavily dependent on
the Government for their normal revenue though frequently the Government makes grants to the
municipalities for special projects.

Methods of taxation varied in Manama and Muharraq; in Manama the tax on houses which
were let was assessed according to the rent at i$as. in the rupee, houses occupied by their owners
paid according to an old assessment whose basis has never been clearly revealed, but neither the size
of the house nor the financial position of the owner appeared to have any bearing on the scale of the
tax, large blocks of buildings covering an extensive area and containing twenty or thirty rooms, owned
by wealthy merchants, paid Rs. 2 p.m. while four roomed flats, above shops, leased usually by foreign­
ers, paid house tax in proportion to the exorbitant rents which were charged by the landlords.
In Muharraq all houses and shops were divided into a number of classes according to the size of the
premises and each grade was liablp for a certain tax, but only half a dozen houses in town paid the
tax of the top grade, which was Rs. 5 p.m. Property of the Ruling Family and their servants and
retainers was immune from tax ; in Muharraq about 1,000 out of a total of 4,600 houses of which 4,000
were stone and 600 barastis, enjoyed tax immunity. At various times the Government has taken
up the question of municipal taxation with the Manama and Muharraq councils and eventually a
reassessment was made of all houses occupied by their owners with a view to fixing rates of taxation
for these premises which should be more in line with the taxes paid on rented houses.
RECEIPTS AND EXPENDITURE OF MANAMA AND MUHARRAQ
MUNICIPALITIES FOR YEARS 1344-1365
MANAMA. MUHARRAQ.
Year. Receipts. Exp. Receipts. Exp.
1344 1,19,600 97.000
1345 1.11.000 90.000
1346 1.17.300 85.000 46.000 38.500
1347 1,10,800 1,03,000 62.900 59.600
1348 1.06.000 1,03,000 95.6oo 82,800
1349 62.000 68,600 52.000 46.300
13: 62,300 61,300 36.700 28,900
1351 55.000 60,900 33.900 27.700