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Cabinet ‘approves’ new tax project
May 25, 2015, 10:35 am
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The finance ministry has referred the new taxation project to the Cabinet for review and approval pending official implementation in Kuwait in the near future, well-informed sources said.

The sources added that the Cabinet had initially approved the project proposed by the International Monetary Fund (IMF) last month and that an official IMF team would be summoned once the approval was final to set the project’s implementation mechanism and schedule that is expected to range between four and five years, during which the project’s legislative, legal and administrative requirements will be prepared to match the economic changes expected to affect both the public and the private sectors.

“According to the proposed project, taxes would be divided into two main types - value-added tax and business profit tax,” explained the sources, noting that value-added tax would be generalized throughout the GCC in the form of revenue fees while a 10 percent business profit tax would be imposed on all operating companies (both local and foreign) as well as individual businessmen making over KD 50,000 a year, for instance.

The sources explained that imposing the new taxes would annul the current levies of 2.5 percent to support national labor, one percent collected for zakat and one percent collected to support KFAS. 

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