KUWAIT CITY, Aug 17: The Ministry of Finance is currently studying the possibility of imposing taxes on some corporations, agencies, and land, sea and air borders, to increase its revenues, reports Al-Shahed daily quoting sources.
Sources said the government intends to impose new taxes to cover salaries and allowances, which have depleted the State budget, taking into consideration those with limited income.
Sources confirmed the results of studies conducted earlier show the need to diversify the sources of income in the country, instead of completely depending on oil. Sources stressed the need for income sources diversification, especially this time when the whole world is experiencing an economic crisis that might lead to a sudden decline in the price of oil in the global market. Sources warned if this happens the country might not be able to meet its needs, particularly the salaries and bonuses.
Sources added an ad hoc committee has recommended charging fees for certain services provided to expatriates, such as the issuance of visas and final leave cards. Sources disclosed the panel also suggested increasing the prices of some subsidized commodities like gasoline and diesel, considering that the current prices are the lowest in the world.
 Sources said the committee will finalize its report by the end of December and submit it to Finance Minister Mustafa Al-Shamali for approval and referral to the Cabinet.
It has been reported the economists have stressed the importance of enforcing the tax system in Kuwait to contribute to the diversification of the sources of income and push for economic and social development. Sources said 95 percent of Kuwait’s expenditures come from oil revenues. Sources added there are only three countries in the world that have no integrated tax system — Kuwait, Brunei and Ivory Coast.
In a related development, Al-Anba daily has reported that the ministry has issued a circular to the independent corporations, instructing them to submit their proposed budgets, including the instructions and rules on the allocation of budgets for these institutions.
Sources said the circular mandates the presence of ministry representatives in the meetings of the financial departments in these corporations in accordance with the timetable submitted to the ministry, particularly the meeting slated for July 1 every year.
Sources disclosed the circular also stressed the need to closely monitor the implementation of the development plan and the annual program of the government, in addition to the preparation of budget reports and strict compliance with the replacement policy.
Sources added the circular underscored the importance of limiting expenditures, diversifying sources of income, finding ways to be self-sufficient, and arranging transportation leasing procedures to ensure the allocation of cars only for the necessary services. It also reiterated the need to strictly implement the decision of the Cabinet and the ministry on granting air tickets, mobile phones and other privileges, in addition to limiting the purchase of luxury cars and furniture. It also obliged the suppliers of machines like computers to train the maintenance staff assigned by the government to guarantee the machines are always in good condition.