When bureaucrats meet business

As Kuwait's banking community tells its country's lawmakers to stop meddling in monetary policy, Saudi's Shoura Council is stepping up its interference in small business issues. An incredibly detailed new law, awaiting Council of Ministers' approval, plans to govern the summer opening times of sheesha outlets, decide when highway food stops must close, and the winter hours of amusement arcades.

The Shoura Council says the law is the result of two years of research and study. It reiterates that all shops should be closed during prayer times, regardless of the season.

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Poor public spending is a worse crime than direct taxation

Drip by drip the subject of direct taxation on income is being raised by Gulf states. Kuwait is the latest to crack. Its ruler used a local Arabic newspaper last week to point out the high cost of public services will eventually be met by a tax on personal income. Bahrain started a 1 per cent levy in June, the funds going directly to tackle unemployment.

Income tax, said Emir Sheikh Sabah Al-Ahmad Al-Jaber Al Sabah, was not a new concept concept and that it was the state’s right in return for services “but is also a contribution from the citizen to state development”. Oil is running out, the welfare burden is too great and diversifying the economy costs money. Direct taxation is a must, say economists.

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