The ideal Kuwaiti Tax Policy For The Implementation of the GCC Vat Agreement
In fact, Kuwait appears to be a tax haven for Kuwaiti citizens, institutions and companies. These segments are completely exempt from value-added tax on annual net income.
This situation means that imposing value-added tax on consumers directly, will make the capital cycle for merchants and institutions free of the tax burden, in return consumers will bear the full tax burden.
In addition to that, the Kuwaiti citizen’s habit of obtaining compensation and direct government support will make him demand this support again after his inability to face the wave of high prices and inflation that will often follow the imposition of the value-added tax, and thus the role of this tax will be negative; It increases the burden on the public budget instead of treating the accumulated deficit in it.
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