Kuwait MPs may oppose GCC VAT bill

Kuwait MPs may oppose GCC VAT bill
Kuwait City, Kuwait.
Published: 14 August 2017 - 4:22 a.m.
By: Jumana Abdel-Razzaq

A number of Kuwait’s parliament members have said they will oppose the government’s decision to introduce a GCC-backed value added tax (VAT), local media reported.

The MPs said they will not vote for the implementation of the VAT in January due to concerns it will increase prices for citizens and foreign workers, according to Kuwait Times.

MPs opposed to the bill include Riyadh Al-Adasani, who said he was against taxes, and MP Jamaan Al-Harbash, who said he would not accept VAT due to inflation and the government’s inability to control prices, the report said.

From January 2018, value-added tax (VAT) will be introduced simultaneously in all six GCC countries, with businesses seeing a 5% tax added to the cost of their works.

The framework agreement on the introduction of VAT in the region was ratified in July by Saudi Arabia and the UAE and is expected to be signed by the other four GCC states later this year.

Legal experts have stated however that a delay in the implementation of VAT could be a possibility, which could push back the introduction of the tax in some states to June 2018.

 

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