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Kuwait eyes company tax

KUWAIT CITY, Dec 17: Deputy Premier and Minister of Finance Sheikh Salem Abdulaziz Al-Sabah says the ministry is preparing a proposal for imposing taxes on Kuwaiti companies in an attempt to increase the government’s revenues, reports Al-Qabas daily.

He stressed that the government has been studying proposals to implement a tax system on the companies in Kuwait, adding that the Ministry of Finance is coordinating with the concerned authorities in other GCC countries to develop the tax system, which has witnessed considerable progress so far. The Bloomberg Agency, which had sent its questions to the minister via mail, said the plan to impose taxes on the local companies may require the approval of the National Assembly, indicating that the multinational companies in Kuwait pay 15 percent tax.

The Minister of Finance Sheikh Salem Abdulaziz Al-Sabah stepped up efforts regarding the matter one month after HH the Prime Minister Sheikh Jaber Al- Mubarak Al-Sabah, in his speech, urged citizens to reduce their dependence on the country. The minister indicated that the expenditure on subsidies has increased by four times in the last nine financial years, adding that the provision of subsidies has a big effect on the public revenues.

Meanwhile, Head of Al-Shall Economic Consultancy Office Jassem Al- Saadoun said the proposal to impose taxes may face opposition from within the parliament and the government, stressing that the idea is not good even though the government will negotiate well to adopt the proposal. It is noteworthy that International Monetary Fund (IMF) has issued warnings repeatedly to GCC countries about reducing their subsidies and dependence on energy so that their budgets will not face deficiency later.

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