Municipal fees rises on way

By MOHAMMED AL A'ALI
THOUSANDS of businesses and expatriate tenants in Manama face increased municipal fees, as officials try to stamp out cheating. Municipal fees for leased business premises and expatriates' homes or flats at currently calculated at 10 per cent of the monthly rent.
But the Manama Municipal Council is planning to change this and base fees on 10pc of the going rent for the area.
The aim is to stop private deals between landlords and tenants, under which leases state outdated rents, to keep down the municipal fees.
Under the new proposal, the Manama Municipality will stop looking at leases and instead will calculate fees based on the rent in the area.
The council's general-secretariat met yesterday and asked the municipality to prepare a study on the proposal.
"Rent has dramatically increased over the past years, but many municipal fees are still being calculated according to old contracts," said council public relations and information committee vice-chairman Mohammed Mansoor.
"For example, a shop that used to pay rent of BD100 in 1996 now pays BD300, but the municipality only takes BD10.
"New shops in the same area are paying BD30, which shows that there is cheating somehow in paying municipal fees.
"On the other hand, expatriates who have rented flats in 1996 are just paying BD15 considering that their flats' rent is officially stated in the contract as BD150.
"Their new neighbour pays BD25, because the contract states the monthly rent is BD250."
Bahrainis living in flats only pay fees of BD2 every month.
Mr Mansoor said fees for businesses and expatriate tenants would soon be calculated according to the going rate for rent in the area.
"If the rent for 50 per cent or more shops or flats in the area is BD300, then fees will be BD30 for all," he said.
Mr Mansoor said that this would also help increase the municipality's revenue, which in the end is spent on the community. "Whether it is spent on cleaning or development projects, this money is being used wisely for the people," he said.