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‘Power subsidy to save KD 3b per annum’ ‘Govt, Assembly rift bodes ill for future’

KUWAIT CITY, May 1: Former Deputy Premier, former Minister of Finance Mustafa Al- Shamali has said collaboration between the legislative and executive authorities is key to preserving the luxury permanently, reports Al- Rai daily. He warned that inability to control the expenditure will lead to an unknown future, stressing on the significance of reviewing the studies conducted about government’s subsidies, which he stressed, should be given to those who deserve

Subsidy He is of the view that government subsidy should be going to those who really need it and not the other way. He indicated need to reconsider subsidizing items such as fuel, electricity and foodstuffs. He went on saying that the step to withdraw subsidy on electricity will help the country save nearly three billion dinars annually. He explained withdrawing the subsidy on electricity means dealing accordingly with groups such as the commercial group and the investment group, adding they should not be made equal to residential group, in addition to the consumption and cost. Earlier, the Finance Ministry conducted studies to deliberate on the issue, as Kuwait is exerting serious efforts to curb expenditure and wastage. Meanwhile, companies listed under the Kuwait Stock Exchange are not paying their dues to the Kuwait Foundation for the Advancement of Sciences (KFAS), reports Al- Shahed daily quoting informed sources.

Budget They said KFAS necessitated Ministry of Finance, and Ministry of Commerce and Industry to intervene in the matter and demand the companies to pay one percent of their annual net profit. It also insisted that the general assemblies should be strict with the companies when they provide their financial budget each year.

According to the related law, the company that does not pay its dues will face severe sanctions of up to three-year imprisonment and KD 5,000 fine. Sources indicated that the companies last year had to pay taxes of about KD 90 million, adding that these dues should have been paid as income tax, labor support, Zakat or contribution to public services. In another, unrelated development, the Central Bank of Kuwait (CBK) has asked a bank to explain the resignation of several employees, particularly among officials in the first and second levels of the organizational structure, reports Al-Shahed daily quoting sources. Sources revealed the Central Bank has rejected a request to fill the vacant posts unless the bank explains the circumstances leading to the resignations. Sources said the Central Bank finds the situation strange because the bank was established only recently.

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