State Property Fees Could Increase By 10 To 20 Percent

09 May 2022 Kuwait

The concerned authorities have completed a government study for new regulations for those who exploit state real estate, with a proposal to exempt cooperative societies from the increases for several reasons, the most important of which is its support in controlling inflation in the prices of goods and materials sold in coops, which helps the citizens.

According to the sources, the re-pricing of usufruct fees on state property is part of a broader government plan to boost non-oil revenues, and the responsible authorities (the State Property Department, the Public Authority for Industry) are working to complete the trend's implementation, especially since the development of state real estate is a pillar and a major catalyst for a diversified and sustainable economy, according to a local Arabic daily.

According to Al-Qabas, the rise in rental rates would be the first since the Ministry of Finance allowed increases around 5 years ago. The previous time was in April 2017, when varied increases were seen, with certain activities reaching almost 150 percent.

The Council of Ministers had asked government institutions to reconsider the list of prices for state property rents, lands, and buildings in August, as well as assigning the Public Authority for Industry to study a review of the list of prices for commercial and industrial plots, ensuring income diversification and reducing reliance on oil as a single source of income.

According to official figures, the value of revenues collected from state real estate properties has increased significantly in recent years, rising from 55.6 million dinars in fiscal 2015-2016 to around 92.4 million dinars in fiscal 2019-2020, a 66.1 percent increase, while the combined revenues amounted to 432.9 million dinars over the past five fiscal years.

In addition to other things under which revenues are collected, the state property list contains 8,200 agricultural plots, 2,987 chalets, 10 hospitals, 13 parks, 6 service centres, 5 slaughterhouses, and 24 car parks.

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