KUWAIT CITY, Jan 25: Minister of Finance Mustapha Al-Shimali said the ministry recently carried out the necessary documentation and legal procedures, except for the final approval of the Council of Ministers to implement laws on comprehensive income tax, value added tax (VAT), as well as tariffs and additional costs for using facilities, reports Al-Watan Arabic daily.

The daily quoted a source as saying the government is considering implementation of laws on commercial companies and private establishments to accomplish the long-term national economic strategies. He noted the Tax Department in Ministry of Finance has studied the laws in detail, while the Fatwa and Legislation Department has given its approval in that concern, so it remains ratification of the Council of Ministers. He stated the ministry plans to study the current method of implementing those laws in Kuwait, as well as the agencies involved.

He added that other areas of concern are exemptions, types of taxes, regulation governing income tax in Kuwait, significance of tax on various economic and development sectors and the need to ensure fairness in tax collection. He reiterated that tax revenues represent only 6 percent of the entire national income, and so this proposition will increase the revenue.