Fees to be hiked for firms violating laws - Khaleej Times

ABU DHABI — Fees levied on various labour transactions will be hiked for firms violating labours laws and regulations set by the country, Dr Ali bin Abdullah Al Kaabi, Minister of Labour and Social Affairs, has said.

Activating penalty laws and imposing fees on services the ministry used to offer free of charge earlier are also in the pipeline, the minister said.

He said the move comes in the wake of the ministry's efforts to come up with new revenue generation plans to fund developmental projects launched by the ministry.
"This move will help the ministry's efforts to have new sources of revenue in the light of financial cuts imposed by the Ministry of Finance in the budgetory allocations for the Labour Ministry," Dr Kaabi told Khaleej Times yesterday.

Odd, but not surprising. The government cuts your budget. Though there's no mention that the government says you may institute fee for service, you create fee for service.

And your decision to enforce existing penalty laws is predicated not by whether the laws should be enforced (why haven't they? perhaps it was not good law), but because you cannot proceed with the agency's initiatives without some form of revenue.

There's nothing wrong with the government instituting fee for service. But fees above cost of service are taxes, and create the same inefficiencies as taxes.

Penalties deter undesirable behavior. They serve that purpose, not revenue generation.