Reputation of Kuwait at risk
KUWAIT CITY, Nov 17: A study conducted by the specialized team of government revealed that the remittance of expats from Kuwait amounted to 12.9% of GDP last year, highest remittances were to India, followed by Egypt. The study recommendation was conducted on a parliamentary proposal to impose taxes on remittances of expats.
No GCC country imposes direct taxes on foreign transfers or funds, the study warned that imposing such taxes will negatively affect the monetary and financial stability which will resort to making money transfers through informal channels which will pose a risk of combating money laundering and terror financing. Kuwait’s reputation will be at risk.
The proposal to impose taxes on remittances has a negative impact on the overall economy and will contradict its obligation towards the International Monetary Fund as Kuwait is a member and will risk its vision of financial and commercial hub, reports Al Rai.
According to the statistics for the year 2020, remittances to India ranked first with 29.5% followed by Egypt on second with 24.2%. Bangladesh ranked third with 9% followed by Philippines on fourth with 4.9%. Pakistan with 4.3%, Sri Lanka 2.1%, Jordan 1.9%, Iran 1.3%, Nepal 1.2%, and Lebanon with 0.8%.