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Kuwait keen on Introducing Excise Taxes instead of VAT
Kuwait City August 16 2023:
The Kuwait Government said the application of value added tax in Kuwait during the current circumstances will be widely rejected at the parliamentary levels.
The government has excluded it from its plans during the next three years at least, indicating it will resort to the application of excise tax instead of VAT as its first choice for tax collection.
Sources reveal that “The application of excise tax will include tobacco and its derivatives, soft and sweetened drinks and luxury goods such as watches, jewelry and precious stones, as well as luxury cars and yachts.” The value of the proposed tax on these goods will range between 10 and 25 percent.
Sources added that the government wants to apply VAT in accordance with its agreement with Gulf Cooperation Council countries, but it must be approved by the National Assembly, which is currently difficult in light of popular and parliamentary rejection.