GCC nod to VAT, tax proposals – Start 2018

This news has been read 4882 times!

JEDDAH, June 17, (KUNA): The GCC finance ministers discussed and approved on Thursday the proposals to impose the valueadded tax (VAT) and the selective tax, during the 104th extraordinary meeting of the GCC Financial and Economic Cooperation Committee.

In a statement Friday, Bahrain’s Finance Minister Sheikh Ahmad bin Mohammed al-Khalifa, head of the meeting, said ministers approved the two proposals, adding that some procedural details would be discussed in another meeting.

There are several details and points related to the two proposals that need plenty of time to be fulfilled, he said, noting that they would be ready for implementation by the beginning of 2018. Money collected after imposing the two types of taxes would help finance infrastructure projects and help GCC states create job opportunities for their citizens and diversify national income as well as to ensure financial stability, he said.

A Kuwaiti delegation, led by Deputy Prime Minister, Minister of Finance and Acting Oil Minister Anas Al-Saleh, took part in the meeting. Meanwhile, Shuwaikh port has been designated to serve as a launch pad for the implementation of Gulf Cooperation Council (GCC) Customs Union procedures, due to start by the end of the year, General Manager of Kuwait General Administration of Customs (KGAC) Khaled Al-Saif said on Friday.

Al-Saif revealed that information in a statement to KUNA on the sidelines of participation in a meeting of GCC financial and economic delegations in the Saudi city of Jeddah. Moreover, Al-Saif noted that Shuwaikh port has been deemed exemplary due to the fact that it has been found to be up to par with GCC Customs Union standards. He also added that all GCC nations have allocated one of their ports for which to implement the planned procedures.

“The shortcomings found in the chosen ports have been very minimal and all of them are roughly 80 percent fit for the planned procedures to be implemented,” Al-Saif said. “These procedures aim to eliminate any impediments to customs duties between GCC nations,” he noted.

The General Manager of KGAC also said that the GCC Customs Union has made “significant strides,” as he noted that the same procedures planned for sea ports will be implemented on aerial ports as well. The procedures implemented on the chosen ports will ensure tax free transport of goods, as any taxes levied would be left to governments’ discretions.

Meanwhile, Al-Saif said that no final decision has been made on the status of added value and selective taxes, noting that the issue will be addressed in a forthcoming meeting slated for October. He also pointed out that taxes issued on goods are dependent on whether the goods are imported or locally made.

This news has been read 4882 times!