Gulf Air bears brunt of 1% salary tax

Bahrain's national carrier has decided to cover the cost of contributions to a state unemployment benefit scheme.

Gulf Air is to bear the cost of a 1% salary tax the Bahrain government introduced earlier this year to fund a national unemployment benefit scheme.

Bahrain's national carrier will also compensate employees by backdating salary payments to the point when the company implemented the deductions.

"We have carefully and thoroughly studied the matter and we are thankful to the executive committee to swiftly back the decision to relieve the employees of this financial cost," said Björn Näf, acting chief executive of Gulf Air.

"We are proud of the hard work, dedication and commitment by Gulf Air employees as we work together to align, build and grow this national carrier of Bahrain."

The decision came after a meeting between Gulf Air's executive committee and Näf, who initiated the proposal to relieve employees of the levy.

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Unemployment Tax
Posted by matt wuillemin on Thursday 16 August 2007 at 19:00 UAE time

The 1% unemployment tax in Bahrain represents nothing more than a company tax when paid by Gulf air (which they REALLY!! need) but more than that is was income tax on a working population to pay for a non working local population. There was a war some years ago in a small place call the USA over no taxation without representation... maybe the Bahrain govt should read more history!

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