The Kuwaiti government has no plans to introduce a tax on individuals’ incomes, but is currently mulling measures to “reform” the corporate income tax, the country’s deputy prime minister says.
The government has plans to unify income tax for national and foreign companies, explains Kuwaiti deputy prime minister and minister of finance, Anas al-Salih, in press remarks.
He adds that the introduction of a value-added tax on consumption and sales requires a pan-Arab Gulf Cooperation Council agreement so that it can be enforced unanimously.
Al-Salih underlines the Kuwaiti government’s resolve to introduce “necessary” reforms to ensure sustainability of public finance.
According to the minister, such measures entail a reform of the tax system, government-sponsored subsidies and the slashing of unnecessary public expenditure.
In an interview with Al-Rai daily, he spoke about a number of areas where public expenditure can be trimmed according to a recent review of the state’s spending.
Furthermore, the government is looking into how to re-channel subsidies to those who are eligible to receive them instead of the current blanket system, from which all benefit regardless of whether they need it or not.
Al-Salih also said that his ministry was awaiting the outcome of a study exploring a possible deregulation of fuel prices.