Kuwait to postpone VAT implementation to 2021

Kuwait to postpone VAT implementation to 2021
Kuwait.
Published: 17 May 2018 - 2:36 a.m.
By: Shishira Sreenivas

Kuwait will not implement value-added tax before 2021, but revealed that it will push forward with introducing excise tax, the budget committee stated on its website.

The excise tax, the committee noted, will be levied on select products such as tobacco energy drinks and carbonated drinks the statement said.

Motivated by depreciating oil prices, UAE and Saudi Arabia moved forward with the VAT implementation earlier this year, Oman along with Kuwait released statements about their respective decisions to delay till 2019 in January.

A Reuters report stated that the International Monetary Fund (IMF) has estimated VAT in the UAE is expected to amount to 1.5% of the gross domestic product.

The report further stated that Kuwait's finance minister said on Monday that he expected parliament to approve the excise tax during its next session, which begins in October.

 


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