Tax Plans For A Better Life For Kuwaitis

At a time when the Council of Ministers announced that the Minister of Finance, Fahd Al-Jarallah, was assigned to quickly prepare a draft law to increase the minimum pensions for retirees, in cooperation with the relevant parliamentary committees, and to prepare a vision for improving the living standards of citizens working in the public and private sectors, in coordination with the National Assembly, to complete it before the end of the current year, government sources confirmed to Al-Jarida that the government is serious about raising the standard of living of citizens and supporting retirees and employees of both sectors through several government decisions and laws capable of providing them with a decent life.

The next step will depend on non-governmental alternatives, namely selective and corporate taxes. As reported by Al-Jarida daily, government studies concluded that citizens who qualify for support should be divided into segments to benefit from financial increases and retirees should receive a higher minimum pension.

In addition, this includes supporting citizens in the "private" sector to achieve justice and equal opportunities. These studies, according to sources, concluded that the government would not bear all the costs of the upcoming increases, but would rather resort to alternative methods so that the general budget would not be affected. It is estimated that the cost of implementing the new laws will exceed 700 million dinars, but only 300 million dinars will be borne by the government.

Based on directives from the political leadership, these laws, which will be passed by the end of the year, were developed, then extensive research led to the government's announcement at the Cabinet meeting. As a result of recent interrogations, it has been denied by the government that the recent trend of approving retiree laws and raising the standard of living is a way to buy time or loyalty in Parliament.

Based on the sources, it was suggested that the cost of improving living conditions could be borne by imposing a selective tax on harmful goods, energy drinks, and cigarettes, which is part of a Gulf agreement. A 400 million dinar tax will be levied on companies, banks, and some petroleum derivatives, while 300 million dinars will be levied on the government. According to the sources, major economic and financial reforms will be implemented to raise the standard of living, which will contribute significantly to supporting the state budget. In this way, the budget will be financed largely by non-oil revenues, eliminating the tendency to tax citizens after these laws are approved.

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