Why Qatar needs taxes

27 May, 2010  Causes, Gov

I’m not going insane. It’s something I’ve always wanted to talk about and a commenter on the “Qataris are Rich – The Myth” post had touched on taxes and brought this back on my mind.

I don’t want to be taxed like crazy (like how the UK does to its people) but maybe a slight tax would be a good thing. (I’m talking about income tax and none of that VAT stupidity!)

Imagine if Qatar taxed citizens 1-2% of their salary for example.

1) That should be enough to beautify the country, parks, water systems, lights, etc…

2) People would demand that the country does something with their tax money

3) People would start conciously thinking of their financial status

The government should also provide tax breaks.

1) If you build a garden or put grass outside of your house, you get a 50% tax break (this forces people to beautify Qatar to avoid paying tax)

2) If your organization (or even your household) does something charitable, you get a tax break

If you think about it, Qatar is the ‘perfect’ country to have tax.

1) The taxes aren’t ‘needed’ by the government, which means that it should remain stable.

2) The tax money they generate would be considered a ‘bonus’

Who can give me their views on tax?  Good? Bad? If you think it’s good, explain why? Remember, don’t just think of the economic impact, think of society, psychology, bureaucracy, etc..

  • http://www.thegulfblog.com David

    Well done for broaching the subject. A few quick thoughts.

    1) Eventually, you’ll have to have ‘real’ taxes i.e. a damn sight more than 1-2%. But, you’re right, you’ll need to start off small.

    2) There is an adage about all this: ‘no taxation means/for no representation.’ I.e. as long as people don’t pay taxes, not having a vote is not so much a problem; However, when you start taxing people…

    3) Taxes (or bills, rather) are absolutely CRUCIAL if people are ever going to learn ‘the value of money’. People will continue to splurge insane amounts of money on Hummers etc (debt levels, as was mentioned before…) or leave lights on, water running, if there is no ‘come-back’; no cost. [Agreeing with your point 3]

    4) You really want to encourage people living in what is a desertified part of the world to plant more lawns?!

    5) Perhaps a 1% tax on peoples’ incomes over, say, £30,000 per year which gets put into a humanitarian assistance pot, or something like that.

  • http://www.iloveqatar.net Kei

    awesome points.

    Re/ 4, not necessarily lawns, but trees and bushes at least.

    I believe that if there are more plants in Qatar, it could significantly reduce the amount of dust in the country (and I’m just guessing here since I have no scientific evidence), reduce the avg temperature.

  • Susan Hope Rodefer

    I whole-heartedly agree. Taxes would definitely encourage more mindful spending and awareness of finances among the citizens.

    I also think that taxation would help foster stronger civic responsibility among the citizenry here. I think Qataris are already (rightly) proud of their country, but I think they could have a stronger sense of responsibility for the betterment of their society.

    I’m also a big fan of countries having a national service program — not necessarily military, but some sort of obligatory service that requires young people to give back to their country in some meaningful way. Teaching, charity work, environmental service, agricultural and, yes, military service — all useful ways that citizens can contribute towards their country.

    This would be especially useful here in Qatar because I think people automatically reach for their wallets when asked to help. Not that that isn’t useful — of course it is. But giving money only provides an initial sense of having contributed towards something; it is short-lived. When you give of your time and effort, your sweat and energy, you strengthen the sense of community and you encourage people to connect with one another. And you create a habit of service that will hopefully last throughout the person’s life.

    So I think Qatar should consider national service as well.

  • http://eye-kare.blogspot.com Ahmad

    People here don’t understand the concept of taxes. To them it’s just a way for the government to “steal” money from them. I agree with you that we need taxes. But if the government started collecting taxes and spending them on things that I don’t want my money to be spent one, then people will start questioning the government.

    this will open eyes on things and the government in our country doesn’t like people to open their eyes.

    shower them with money and keep’em quiet is the way to go :\

  • Ali

    I am not so sure that Taxes are a good idea. Mainly for the following reason, upon raising taxes prices, rents etc will rise as well. This will add the the already exiting inflation in the country.

  • Michael

    I am of the opinion that the reason the government doesn’t tax citizens is because they are afraid that it WILL lead to citizens wanting a meaningful say in how the money is spent.

    If you start taxing citizens, you will need meaningful, democratic bodies to administer the way the revenue is spent. And we all know that this would really upset a certain family who currently enjoy making all the decisions.

    I also can’t really see that your argument that the tax revenue could be used for parks, general beautification projects, maintenance of public roads, etc is a particularly strong one. If this government has the money to throw around on pet projects, a new airport, Aspire, the Islamic Museum, while going on a shopping spree globally to buy anything they can get their hands on, then it’s pretty clear the government ALREADY has the money to be spent on fixing roads and lighting.

    This is a government too feeble to make citizens pay for water and electricity, which has resulted in a massive waste of both, leading to shortages and embarrassing infrastructure development.

    And since most citizens seem to work for the government, or government affiliated bodies, taxing citizens would just seem to be pushing the same money around; the government giving it on one hand, and taking it back on the other.

    If you think this country wants, needs or deserves democracy, then taxation would be the first thing to provoke it. But I wouldn’t hold your breath.

  • Carl

    Here in sweden i pay 30% of my salary in taxes… I think this is insanity. And thats not all, we also have so called VAT taxes, additional taxes on houses, cars etc. I think your suggestion, a 1% tax is a good idea.

  • Sulis

    Salam,
    If the government has enough resources/incomes, I don’t think we need tax.
    Maybe what we need is to make a team (re-enforce team) to encourage the people to do such charities. Plant trees by self motivation, save the electricity and water to help reducing global warming, be nice to everybody as the religion orders (I believe most Qataris are moslem), and many other good things that we can learn from the others.
    Need all communities do the effort to harmonize the life in Qatar.
    Thanks.

  • Anon

    Hello,

    I’ll be very blunt here so please do excuse me.
    First off, great idea. But no.
    For the simple reason of the economic situation we are having right now.
    Some might say its no big deal but others who lived a bit longer can, will and hate the insane inflation we are living.

    The only way I believe taxes can be fairly implemented is if the prices are fairly influenced to both consumer and seller. And keeping in mind that most goods are imported from China, the prices really do not make sense. A profit margin of 4658436541% is insane.

    Anyway, great idea. But a lot of steps need to taken first.

    Also, democracy is in the eyes of the beholder. True democracy is NOT seen anywhere today in any country.

    Peace to everyone and everything.

  • Persabian_beauty

    Tax first off is haram islamically and haram morally. Im a Qatari living in the states and taxes are non-sense! they are never used for what they should be used on and instead cause the citizens to be put back financially.  On top of that, once one tax starts, you will see 50 other taxes appearing, and the numbers add up, I made a sad $11.00/hr and had a 2.75% state tax taken out on top of income tax, medical tax, withholding tax, and something that wont exist 10 years from now called social security… my grand earning after these taxes was $7.25 (the legal amount to paid for MINIMUM WAGE!!!) I worked in Qatar too, and come to find out… they already take a form of tax out from all Qataris check called “pension” which has nothing to do with that, and you will never see it. It is a tax, and no benefit is seen from it. instead of taxing Qataris, tax expats (I’m talking white people and any citizen of the US and EU) who get all the luxuries of Qatar while earning up to triple the salary of any Qatari with sometimes less education than the Qatari who is busting his chops, mind I say, I have solid evidence and know that many expats play the game of “tax evation” everyday, and thats their main reason for coming here. Its not a secret.  Every country in the world makes a foreign citizen work hard for working in their country and dont provide half of the ammenities that Qatar does. Taxes will only make Qataris not only sacrifice more than what they already have been and will be in the future… but it will also make us do something haram (ribbah). Ask any Muslim finance major and they will tell you.  I have seen this from both sides and I am half American, so my opinions are very UNbiased.  Anyone who would get upset from this will either be ignorant, a foreigner, or someone is evading taxes, or all of the above.

    Peace!

  • Persabian_beauty

    If the concept of tax is something that you agree with, then why come to Qatar? each country has a set ground of principles when it comes to finances, judiciary systems, and so on.  So if tax is something so greatly appreciated, than one should live in a country that practices the principles of taxing.  not attacking, but simply a thought.

  • Pinkkitty85233

    lets also not forget that foreigners splurge on things such as liquor, fancy cars, designer everything, and so much more when they come to Qatar, its part of the large income per capita scenario is it not? And let’s not forget that is what “the catch” truly is.  If it weren’t, no one would come here, at least not as many expats would, because half of the time they are not even paying taxes themselves.  I know about 15 expats of all ages and from across the US and Europe, and almost 1/2 of them lie and or cheat their country’s tax system.  I find it interesting when us expats try to teach other nations citizens the meanings of things when our countries have major financial issues and practice taxation.

Freedom of Expression

    Article 19 of the Universal Declaration of Human Rights which the Qatari Government is a signatory of states: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any medias and regardless of any frontiers.

    The Emiri Decision Number 86 of the year 2007 on the establishment of the Doha Free Information Centre marked yet another step towards establishing a State of rights and freedom of speech. The decision stipulated that the Centre be a non-profit organization, headquartered in Doha City, and have the authority to establish other affiliated centres inside and outside Qatar. It is worth mentioning that His Highness the Emir issued a decision in 1998 annulling the ministry of information, giving birth to a new era of freedom of speech where censorship was removed from local media.