We do not know what the questions were that the 73 members of the Shoura Council who opposed income tax on foreigners addressed to the financial committee. Such an unknown is unforgivable when it comes to an issue that is of concern to our entire society. The unknown questions seeking answers were no doubt many. Speaking generally, they must have touched on the following points.

First, was there to be a unified income tax on all expatriates regardless of job specialties? Or was the tax rate to be set up in a different way? Was the proposed 10 percent tax to be imposed on a surgeon and a mechanic enough to create a displacement effect in favor of Saudi job seekers?

Second, in the absence of comprehensive statistics, how can the unemployment rate among Saudis in certain professions be measured?

Third, if the project were accepted, would employers agree to pay higher wages and thus risk a decline in revenues, or would the extra costs be passed along to consumers as higher prices?

Fourth, should an expatriate working in a city be treated the same as one in a village or an isolated area? If the answer is yes, we should expect a decline in the quality of service outside the cities? If the answer is no, then why penalize city dwellers?

Fifth, we know of the difficulties and tax evasions facing the Zakah and Income Department when it comes to collecting its obligatory 2.5 percent. How was the income tax to be managed? What steps were required to increase the efficiency of collection? The ideal answer would have been that such a program would be designed after the bill had been passed.

Sixth, who were the government bodies authorized to administer the tax project? Where would the money go? What would the priorities be when it came to spending? The unsatisfactory answer would be that the Ministry of Finance would take care of the project and that the money would go to priorities set in the state budget.

Seventh: The beneficiary of the tax should have been the citizen looking for a job. Well, this is a nice idea. Was levying a tax on foreign workers the only means to broaden the base of national employment? Is competition between foreign and national workers confined only to comparative wage variations? What about increases in recruitment, work permits and other fees? Have these been exhausted?

Arab News From the Local Press 18 January 2003