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“Budgetary Surplus Huge, Taxation Law Unnecessary”

Middle East : 26 October 2012

Source: Arab Times

KUWAIT CITY: The country does not need a taxation law which is aimed at increasing national revenues to develop public services and infrastructure, reports Al-Kuwaitiah daily quoting Economics Professor at Kuwait University Dr Anwar Al-Shuraiaan.

Al-Shuraiaan argued Kuwait has been enjoying huge budgetary surplus over the years; hence, the taxation law is unnecessary. He explained the main problem is the mismanagement of public funds and the budgetary surplus. He affirmed the government has started taking steps to address the problem, such as rectifying errors in handling development projects and pushing for the implementation of projects deemed beneficial to the nation.

He revealed the idea of implementing a comprehensive taxation system in Kuwait was first presented in 1999 when the revenues from petroleum were not enough to cover national expenditures. At the time, the government thought of enacting the taxation law to augment the national income but it is no longer required due to the huge budgetary surplus of the country, he added.

Meanwhile, the Ministry of Commerce and Industry has looked into the complaints of companies whose licenses were revoked erroneously, reports Al-Seyassah daily quoting sources.

One of the companies has accused some ministry officials of committing a serious blunder and it has presented documents as proof. Sources said the company wants the ministry to apologize for violating its rights, considering its financial situation is stable.

Sources disclosed the ministry formed a committee last week to review the complaints in a bid to restore the rights of the companies.

Sources added some companies have encountered problems with the customs officers who refused to release their shipments due to their failure to present a license.

Sources cited the Kuwait Aluminum Company as one of those hardest hit by the blunder as its shipment worth KD1 million got stuck at the port. Sources said the owners of the affected companies have threatened to sue the director of the Company Licenses Department and the concerned assistant undersecretaries if they fail to take the necessary steps to rectify the error which had a negative impact on their operations, particularly their import activities.

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