A government study shows migrant labor remittances during 2020 from Kuwait was about 12.9 percent of the GDP topped by India with a share of 29.5 percent, and Egypt in second with 24.2%. In third place came Bangladesh whose share was 9 percent, the Philippines fourth with 4.9%, Pakistan with 4.3%, Sri Lanka with 2.1%, Jordan with 1.9%, Iran with 1.3%, Nepal with 1.2%, and Lebanon with 0.8%.
While there is no Gulf country that imposes direct taxes on foreign money transfers, the study, the Al-Rai daily said, concluded with a number of observations regarding parliamentary proposals to impose a tax on these remittances amid fears of migrant workers resorting to unofficial channels that conflict with combating money laundering and terrorist financing.
The study warned that imposing such taxes will negatively affect the efforts to enhance monetary and financial stability, and resort to making transfers through informal channels with the risks that this poses to efforts to combat money laundering and financing of terrorism.
The study stressed that the proposal to impose taxes on remittances has negative repercussions on the overall economy, and contradicts the obligations of the member states of the International Monetary Fund and Kuwait among them, and contradicts the vision of Kuwait as a financial and commercial center.
