Manama: Kuwait’s government has reiterated its opposition to attempts by lawmakers to impose fees on remittances by expatriates.
“The stance of the government has not changed. It still rejects the move to introduce fees on remittances by expatriates because of the negative consequences. The approach towards the issue is not comprehensive and will not provide financial resources for the budget,” a ministerial source was quoted as saying by Kuwaiti media on Sunday.
The lawmakers who had been calling for the tax have been arguing that it would help generate revenues for the government, keep funds in the country and boost the economy. A parliamentary committee said that it supported the move.
However, the government last month refuted all the claims by the MPs among concerns that such a tax would constitute a risk to Kuwait’s international reputation and weaken its ability to combat money laundering.
Imposing taxes would also harm financial stability in the country and would generate a black market that would be difficult to control.
The government also expressed concern that the taxes would have an impact on the processes of attracting foreign investment, especially that it had plans to boost a reputation of being a regional financial centre with highly attractive incentives.
Foreigners make up around 70 per cent of the total population of 4.5 million in the northern Arabian Gulf state.