KUWAIT CITY, April 24: The Ministry of Finance is drafting a proposal suggesting taxes be imposed on private companies which will participate in the implementation of the country’s development plan, reliable sources told Awan daily.
The proposal, which is the first of its kind, is in line with the country’s plan to become a financial and commercial center in the region.
The main objective is to reinforce productivity and discourage the consumption of unnecessary commodities, say sources, adding it will help people in controlling their expenditure and invest in productive areas.
The proposal is also aimed at developing a tax system which will help increase the State’s non-oil revenues to KD 4,200 million by the time all the projects mentioned in the development plan are implemented within the next four years, noted sources.
It is worth mentioning that the National Assembly approved the development plan two months ago and also approved the first reading of the privatization bill last week.
Since the privatization bill enables private sector to participate in the administration process and allows it to possess properties, a comprehensive tax is a natural step, stated sources
Incidentally, the income tax provision was included in the development plan.