Amid the Council of Ministers’ announcement of assigning the Minister of Finance, Fahd Al-Jarallah, to expedite the preparation of a draft law aimed at increasing minimum pensions for retirees in collaboration with relevant parliamentary committees, government sources have affirmed their commitment to enhancing the living standards of Kuwaiti citizens working in both the public and private sectors.
They intentions is to achieve through this a comprehensive vision, developed in coordination with the National Assembly, to be finalized before the end of the current year, reports Al-Jarida daily.
These government sources have emphasized their seriousness in improving the quality of life for citizens, retirees, and employees in both public and private sectors by implementing various government decisions and laws designed to provide them with a decent standard of living. Notably, this endeavor will explore non-governmental alternatives, with particular focus on selective and corporate taxes.
The sources have revealed that their studies have led to segmenting eligible citizens to benefit from financial increases on one hand and raising the minimum pension for retirees on the other.
Moreover, they aim to provide support to citizens working in the private sector, promoting fairness and equal opportunities. Importantly, these studies have shown that the government will not shoulder the entire financial burden of the upcoming increases, opting for alternative methods to avoid impacting the general budget. The general budget will only cover 300 million dinars of the estimated 700 million dinars required for implementing the upcoming laws.
These laws, expected to be enacted by the end of this year, have been developed based on directives from the political leadership and extensive studies. The sources have emphasized that this government’s initiative to pass retiree-related laws and elevate living standards is not driven by an attempt to buy time or gain loyalty, especially in light of recent waves of parliamentary interrogations.
To finance these efforts to improve living conditions, the government plans to introduce a selective tax on harmful goods, energy drinks, and cigarettes, in alignment with a Gulf agreement.
Additionally, taxes will be imposed on companies, banks, and certain petroleum derivatives, generating estimated revenue of 400 million dinars. The remaining 300 million dinars will be borne by the government.
Furthermore, this commitment to raising the standard of living will be complemented by significant economic and financial reforms expected to substantially bolster the state budget. These reforms aim to enhance non-oil revenues, thereby becoming a significant source of budgetary income. Importantly, the government has no intention of imposing additional taxes on citizens following the approval of these laws
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