Al-Nabit stresses need for subsidy, tax reforms

By Peter Alagos Business Reporter

HE the Minister of Development Planning and Statistics Dr Saleh Mohamed Salem al-Nabit has underscored the need for “greater discipline” in government spending, and to consider reforms in Qatar’s subsidy and tax systems.

Speaking at the Dean’s Lecture Series at Carnegie Mellon University in Qatar (CMU-Q) on Monday, al-Nabit noted that the current glut in the global oil market and slump in prices prompted the State to rethink its strategies.

“In light of…the high-level challenges facing the hydrocarbon market, a greater discipline has become an urgency in the assessment and spending of development budget for all programmes and projects,” he said.

On government subsidies and possible tax reforms, the minister did not elaborate but pointed out that “it has also become an urgent need to consider issues such as the rationalisation of support and providing it to target groups, development of the tax system, and supporting the revenue side of the budget.”

Al-Nabit underlined the need for planning and the setting up of a timetable to avoid delays in the implementation of Qatar’s multibillion infrastructure projects.

“In view of the ambitious plans of investment and infrastructure, risks arise of the possible delay in the completion of some major projects (the absorptive capacity of the ports and warehouses, supply of raw materials, and the high costs of projects), which requires setting a timetable for projects and clear priorities, hence, there are administrative and legislative challenges to manage these projects,” the minister said.

Despite low oil prices, al-Nabit said, HH the Emir Sheikh Tamim bin Hamad al-Thani had confirmed during a recent speech at the inauguration of the 44th ordinary session of the Advisory Council that major projects will be implemented.

On institutional challenges, al-Nabit said Qatar also needs “effective public sector institutions” to achieve the Qatar National Vision 2030 objectives for social progress, human development, diversified economy, and sustainable environment.

Citing the National Development Strategy 2011-2016, al-Nabit said: “This will require building the capacity of institutions and organisations, providing efficient and transparent services, fruitful co-operation, and partnerships between the public and private sectors, creating an enabling environment for the business sector and providing a wider space for civil society.”

He added: “A sound implementation of the strategies and plans requires coordination of efforts between ministries and government agencies, the private sector, civil society, and universities.

“It also requires public awareness that reinforces the concepts and values of the comprehensive national planning rather than isolated initiatives that might be good on its own.”

Al-Nabit also underscored the role of the country’s higher learning institutions and other sectors of society in addressing Qatar’s economic and development challenges.