Monday , October 23 2017

Subsidy cuts on petrol to hurt citizens, expats – Smart ID holders to benefit

KUWAIT CITY, Dec 13: Subsequent to announcement by the Ministry of Finance few days ago, which confirmed that government will first lift subsidy from petrol and gradually include other commodities, government sources have said the system of preserving subsidy on petrol will be applied through civil ID to guarantee the delivery of subsidy to those who deserve it, reports Al-Anba daily.

They said the new system will allow citizens to fill their vehicles several times per month using their smart civil ID to enjoy subsidy at any petrol station.

They explained that the new system will be applied in cooperation with Public Authority for Civil Information, K-net and the petrol companies, indicating the civil IDs of citizens will be programmed automatically to grant subsidy to those who deserve it, and the step will be the beginning of connecting the daily transactions of citizens with the various state authorities.

They expected the new system will be launched in 2016 on the occasion of the national days after media awareness campaigns educating the citizens on using the smart civil ID and calculating their balance after each transaction.

In the same context, economic experts are of the view that the prices of commodities and services will be directly influenced by the new prices of petrol, as tariffs for transportation of commodities will increase, as well as taxi fare, cost of services, and cost of production.

They noted the prices of products will automatically shoot up and consumers will endure consequences of the hike in prices of commodities, transport, accommodation, fees and services.

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