KUWAIT CITY, Aug 19: The incessant depletion of public funds is caused by popular demands leading the nation to increase salaries thrice within 11 years, reports Al-Shahed daily quoting member of the Economic Consultative Committee Dr Abdulwahab Al-Wazzan.

Al-Wazzan, who is also the board member of Kuwait Chamber of Commerce and Industry, said 4 billion dinars was spent on salaries and subsidies, while the current budget is estimated at 13 billion dinars.
“This is a dangerous sign”, he said, indicating the imposition of tax has been recommended by international financial institutions such as IMF.

He stressed that implementation of the tax system has been carefully studied on practical basis, indicating around 85 percent of Kuwaitis shall be exempted from tax. However, it will apply to institutions and companies at the private sector if the system is finally approved.

Meanwhile, the proposed tax rate among workers earning KD 10,000 and above will be about 2.5 percent, whereas 5 percent will be imposed on workers earning KD 50,000 to KD 100,000. The tax rate will be 10 percent among those earning KD 50,000 to KD 250,000, whereas those with KD 250,000 to a million income rate will pay 15 percent tax, and those earning above 5,000,000 dinars will be charged 20 percent tax rate.

Professionals such as physicians, engineers and lawyers will also be taxed, he noted.
Prime Minister of the Kingdom of Bahrain Khalifa bin Salman Al Khalifa says that Kuwaiti investments in Bahrain are welcome and will enjoy all the facilities stemming from the distinguished relations between the two countries.

Prince Khalifa said during a meeting with Kuwaiti businessman Mohammed Al-Shaya that “the prospects of growing cooperation is the result of excellent relationships between Bahrain and Kuwait.” He added that the Kingdom of Bahrain and Kuwait are by a special relationship in its form and content based on strong ties that have made it a unique example of love and brotherhood.

He stressed that all the doors are open to Gulf investments, including the Kuwaiti, noting the widening of the circle of Gulf investments in Bahrain, which provides a clear picture of the nature of economic cooperation among the GCC states.