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Kuwait’s MPs against Imposing Taxes to address Budget Deficit
Kuwait- January 17, 2022:
During the National Assembly’s session, MPs in Kuwait have strongly refused economic reforms that would involve imposing taxes on citizens in the country to address the budget deficit.
According to a state-run news agency, a number of politicians called for solutions to address the country’s budget deficit –A record KD10.8 billion ($36bn) deficit in 2020, up 175 percent from a year earlier.
During the session, the MPs affirmed the need to allow the oil sector to rely on other oil-related substances to create multi-income sources. However, it was emphasized that this solution shouldn’t be touching upon taxation.
Presently, Kuwait does not impose income tax on income earned by individuals. However, companies in the region pay 4.5 percent of their net profits, that includes zakat and labor support and a contribution to the Foundation for the Advancement of Sciences.