Expatriates breathed a sigh of relief here after the Shoura Council voted not to impose income tax on their earnings. However, some economic experts and Shoura members still believe that foreigners should be taxed. A total of 70 Shoura Council members rejected the tax proposal on Sunday, with 45 supporting it. There was heated debate in the Council with some members saying that the Kingdom needs another source of income; and that more jobs could be created for Saudis if it was more costly to recruit foreigners. Others said that the country needs the expertise and labor of expats to help development. Dr. Osama Filali, an economic specialist, said that while “every country has the right to impose tax and it is a good source of income, the Kingdom does not need the income from tax. This is why the Shoura members voted against the proposal.” He said that almost three quarters of all government services are spent on expatriates. “This is definitely a drain on the budget. However, we have to note that these expatriates are also producing products and services for the country,” added Filali. Dr. Salim Ba Ajaja, an economic specialist, told Saudi Gazette that the proposal needs to be revised, so that tax could be imposed on those earning over SR150,000 a year. “The Shoura members voted in favor of expatriates who have low salaries and have also considered the high cost of living. However, all expatriates should not be lumped together.” Ba Ajaja said that the large amounts being transferred by expatriates were alarming. Ali Basaed, a 30-year-old Yemeni who works for a private company, said that when he heard about the possible tax he was “shocked”. “It was wise of the Shoura members not to vote in favor of this proposal. We have been living here forever, we consider this our country. It would have been very bad if it (the proposal) was implemented,” he said. Fahad Abdullah, an expatriate who works for an insurance company, was also relieved. “The Kingdom needs us and we also need our jobs. It is normal to transfer money to our families, that's why we're here in the first place. A tax will only place more pressure on us.” Mohammad Al-Quwaihes, the Shoura member who had initially made the proposal, said he “respects” the voting. Al-Quwaihes has argued that the tax would boost Saudization. He said a study has shown that SR100 billion was transferred outside the Kingdom last year and foreigners were not paying Zakat, a mandatory form of charity in Islam. Abdullah Abu Lumha, a Shoura member, believes that the tax should be imposed. “Some expatriates came here to work for us (Saudis) but it turned out we are working for them. We have to take the country back by taxing them for all the services they're getting.” Abdullah Bukhari, a Shoura member, said the proposal has come at the “wrong time” because the Kingdom still needs the expertise of technicians and engineers from abroad. __
