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SR200 expat levy unconstitutional, says legal expert
Published in The Saudi Gazette on 04 - 01 - 2013


Saudi Gazette report

RIYADH — The monthly fee of SR200 recently imposed by the Ministry of Labor on all foreign employees working for private companies that have not met Saudization targets contravenes the Kingdom's basic law, a lawyer and legal consultant has said.
Abdul Jaleel Al-Khaldi told Al-Hayat newspaper that the basic system of rule has limited the power of legislation to the Council of Ministers and the Shoura Council together.
He said: “Article No. 67 of the basic rule of governance stipulated clearly that none of the two establishments should unilaterally issue legislations.
The two should do this together and their legislative activity should be sealed by royal decrees in order to be legally binding.
Taxes and fees should be imposed by the Cabinet and the Shoura Council together only through a royal decree, according to the basic law, he said.
Labor Minister Adel Fakieh has come under fire for hastily implementing the Cabinet decision.
Businessmen, industrialists, chambers of commerce and many others criticized the decision and asked the minister to rescind it, but he has not responded.
Al-Khaldi said the basic system of rule issued in 1412AH the most important constitutional document in the Kingdom.
He said the system has specified the nature of the state, its objectives, responsibilities and relationship with its citizens.
He said the system has made it clear that the three main centers of power in the Kingdom are the executive, judiciary and legislative.
The system has also clarified the general frameworks of the authorities governing financial, economic and social affairs and the state's relationship with other countries and individuals, he added.
“With these mechanisms, this system is equivalent to what is known as a constitution in other countries.”
Al-Khaldi said any new legislation should adhere to the constitution. “Any legislation not in line with the constitution is considered null and void.”
The lawyer said the complexities of contemporary life and increase of economic and social activities have necessitated the issuance of a number of new rules and regulations.
He noted that because their large numbers, some of these decisions and regulations may be unconstitutional. “The ministerial decision to increase labor fees is one of these regulations.
Al-Khaldi pointed out that under the system of basic rule, the work of the executive should be constantly checked and balanced to ensure that it does not contradict the system.
He said the legal hierarchy in the Kingdom is topped by the basic system of rule, then the laws and finally the organizing statutes.
“This structure should not be breached by royal decrees, Cabinet resolutions or ministerial decisions,” Al-Khaldi added.
He said Article No. 20 of the basic system of rule stipulates that taxes and fees will only be imposed when they are absolutely needed and with complete fairness.
“The fees will be imposed or nullified by the two main legislative powers — the Cabinet and the Shoura Council. Accordingly, the decision of the labor minister to levy new labor fees is illegitimate,” Al-Khaldi said.


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