Deceased Debt Write-Off Proposal

The Financial and Economic Affairs Committee of Bahrain’s Council of Representatives recommended approving a bill that would automatically cancel financial obligations owed by a deceased citizen to government entities, except for fines and compensation ordered in criminal cases. The Council is due to vote on the bill next Tuesday. The Ministry of Electricity and Water Affairs warned that writing off overdue payments would reduce state revenue and negatively affect services, noting that exemptions are already available for deceased people on low incomes. The Ministry of Housing said that heirs are exempted from housing-service debt in certain cases. On death, installments on some loans and Social Insurance contributions are also waived, while overdue employer contributions remain payable when a business is transferred to the heirs.

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