Deputy Chairman of Kuwait Exchange Companies Union (KECU) Talal Bahman has accused the Ministry of Finance, Central Bank of Financeand the relevant parliamentary committees of trying to eliminate the role of the union as they did not ask for the union’s opinion about imposing tax on the remittances of expatriates, reports Al-Rai daily.
Bahman pointed out that ignoring the opinion of KECU, which is considered a specialized body, is a manifestation of the intention of the government and Parliament to pass the bill. He said the attitude of some MPs seeking electoral gains will devastate an important economic sector including 40 companies.
He argued the expected revenues through the implementation of the bill are insignificant — about KD60 million, indicating this amount is not enough to address the budget deficit.
He warned that imposing tax on remittances of expatriates will negatively affect the citizens’ pockets, clarifying it is not right to adopt an experience which is successful in one of the GCC countries and enforce it in Kuwait without paying attention to local circumstances.
He asserted this bill paves way for expatiates to search for alternative ways to transfer their money and this step will have a negative impact on the economy of the State. He went on to say that the union warned about change in the expatriates’ economic attitude as it will negatively affect all the economic activities of citizens; thereby, making the latter suffer from reduction of revenues.
He added the proposal, once implemented, will make the black market flourish and this might affect the value of the local currency.
He also pointed out the possibility of increasing the cost for combating illegal activities such as money laundering and financing terrorism.
SOURCE : ARABTIMES