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A Selective Tax system to be implemented in Kuwait
Kuwait- March 24, 2022:
Due to high inflation rates and turmoil in global markets, both the national assembly and the people of Kuwait are likely to reject the VAT system in future. Hence the Kuwaiti government has deferred its plans to implement value-added tax (VAT) any time soon.
However, Kuwait is contemplating a move towards the implementation of a selective taxation system ranging from 10 to 25 percent. This excise tax will cover tobacco products, sweetened drinks, expensive goods such as watches, jewelry and precious stones as well as luxury cars and yachts, instead of VAT.
Sources expect that the selective tax will fetch around 500 million dinars annually to the government.