State Treasury Expects To Make $2b Following Application Of Value Added Tax

The State Treasury expects to make $2 billion following the application of the value-added tax (VAT), reports Al-Rai daily quoting sources from the Ministry of Finance.

The sources pointed out the ministry has estimated its forecasts, according to a study prepared in cooperation with the Ministry of Commerce and Industry and the Chamber of Commerce and Industry and the General Administration of Customs, based on the value of imported goods of all types and sizes annually to Kuwait.

The sources pointed the expected figures are measured on the average of the past 3 years, saying the application of this tax will contribute to increase the revenues of the state and make good the deficit in the general budget in addition to reducing dependence on oil over a period of time.

At the beginning of this year, Saudi Arabia and the UAE have imposed a 5 percent VAT on goods under a Gulf agreement. However, the State of Kuwait and the Sultanate of Oman have delayed the imposition of the tax to 2019 for several reasons, including lack of technical and logistical readiness for mechanisms of work and tax calculation.

In the meantime, the National Assembly has discussed the draft tax in preparation for its approval. On the other hand, the sources pointed out that the Ministry of Finance has been mobilized during the past few days, aft er receiving hints about the possibility of listing Kuwait on the blacklist in the event of failing to implement the International Convention on Common Reporting Standard (CRS).

Meanwhile, twenty million dinars of the Ministry of Health budget for the current fiscal will be spent to cover the ministry’s obligations towards contracts and agreements, reports Al-Rai daily quoting ministry sources.

Expenses 
This is in addition to covering the expenses of international health centers and foreign institutions and universities, in the field of research and training, medical consultations and medical analysis and programs of oral health and dentistry and the recruitment of consultants visitors and new agreements which are expected to be concluded.

Giving details, the sources said this includes 383,000 dinars for the American Heart Association agreement, 318,000 dinars for the King Abdul Aziz University for training courses, 100,000 dinars for the Chinese protocol, 8 million dinars for the oral and dental health programs, 155,400 dinars for the Canadian Convention for the recognition of quality assurance, 11,250 dinars for the convention of the UK Standards Authority to provide training and testing services. T

his is in addition to 3 million dinars to Dasman Diabetes Institute agreements, 70,000 dinars to the Emergency Medical Management Agreement and the regional centers for cardiopulmonary resuscitation, 743,000 dinars for contracts of medical analysis abroad, and 450,645 dinars for the cost of consultants including 20,000 dinars for the Royal College of Irish Radiology, 9,000 dinars for the American Board of Anesthesiology, and 1.642 million dinars for the Cooperation Agreement for Medical Education and Training between the Kuwait Institute of Specializations and the Royal College of Canada.

Moreover, other expenditure includes 36,000 dinars for the Convention ONE, 19,000 dinars for the renal and urology center at Mansoura University of Egypt and 742,875 dinars for contracts to be concluded subject to the approval of the Ministry of Finance

 

SOURCE : ARABTIMES

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