‘No direct tax on Kuwaitis’

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Reform plans hit back-burner

KUWAIT CITY, May 19: According to the Minister of Finance and Minister of State for Economic Affairs and Investment Khalifa Hamadeh, the government reiterated its official position regarding the lack of any intention to impose direct taxes on citizens, particularly income tax. In his response to a parliamentary question, the minister stressed that this approach is not on the table, insisting that the low-income and medium-income earners will not be affected by any of the governmental measures for economic reform. In this regard, the Chairman of the parliament’s Finance Committee MP Ahmad Al-Hamad declared that the committee will hold a meeting on Sunday to discuss the development plan, sukuk, real estate issue, and the matter related to the Kuwait Chamber of Commerce, and to arrange its priorities. Sources close to the committee highlighted the danger of the terrifying data and information received by the committee regarding the financial deficit and its misuse by the competent government agencies as well as its weakness in convincing the National Assembly of its reform plans.

They explained that the government figures indicate that freezing the reform plans will raise the accumulated deficit in the budget to more than KD 60 billion by the end of 2025, more than half of which is for salaries and subsidies. This contradicts the government program and the statements of the ministers who sought to reduce the spending limit in the state budget by a maximum of KD 19 billion until 2024 in order to reduce the deficit in the budget. What the government says in its work program and in public differ from what it says in closed rooms or during secret meetings with the various committees. This puts the MPs in great embarrassment when dealing with reform plans. The government confirmed its inability to implement its reform plans and reached a dead end in light of the current composition of the National Assembly, and the difficulty in holding sessions.

There is a sharp divergence in governmental opinion about economic reform plans, especially with the continuation of the pandemic, as there are those who demand the continuation of the strict closure measures that destroyed the economy and small and medium enterprises, and there are those who want the country to open up and return to normal life. The sources warned that the continuation of this confusion will crush the remaining hopes for reviving Kuwaiti youth and their projects, even after the end of the pandemic. They stressed the need to reach a consensus between the two authorities, before it is too late, on the draft laws that cannot be delayed, particularly the draft laws on public debt, levies and costs in exchange for the use of public facilities and services, selective taxes, and value-added tax. – By Raed Youssef Al-Seyassah / Arab Times Staff

This news has been read 60991 times!