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Saturday , December 10 2022

MP completely rejects implementation of VAT and selective tax – Kuwait lacks real financial reforms

This post has been read 18529 times!

MP Ahmad Al-Fadel

KUWAIT CITY, Oct 10: MP Ahmad Al-Fadel alleges that Ministry of Finance is currently deliberating on the prospects of implementing taxes, affirming he completely rejects the idea of taxation alongside other colleagues, especially in the absence of real financial reforms.

The MP stated “there are no such items in their agenda according to the officials from Finance Ministry”, and if he was to remain as chairman of the parliamentary committee for state priorities in the next legislative term, bills related to the implementation of VAT and the GCC selective tax will never “see the light.”

MP Al-Fadel explained that he does not oppose such financial policies. Rather, he rejects their implementation in the country at this point in time. He said the implementation of tax requires specific financial pillars, which the country does not have, and the committee for state priorities has sent several letters to the financial counterpart to set aside the VAT bill and the GCC selective tax on tobacco, food and energy drinks, which currently, the state’s financial structure cannot accommodate.

He stressed that the government cannot tax the companies while it benefits financially from the facilities and services it renders. He reiterated “I am well aware that the country’s general reserves is bleeding, and the minister of finance during the session that discussed the financial state of the country even presented five scenarios, the best of which predicted the general reserves will be completely depleted by 2023”.

Therefore, the MP called for a serious approach towards implementation of financial reform – without wasting time entertaining the idea of taxes”.

By Ahmed Al-Naqeeb Arab Times Staff

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