When economic experts were asked about their opinion on remittance tax, most of them rejected the idea, stressing the need for enhancing the economic environment of the country and achieving the necessary reform before applying such a tax.
Economic expert, former chairman of Board of Directors of Gulf Bank Ali Rasheed Al-Bader said he does not expect the enforcement of tax system in Kuwait to be a success.
He explained that levying the remittances of expatriates will lead to the emergence of a black market, which will reflect negatively on the economy of the state.
Al-Bader affirmed that levying the remittances of expatriates is not a suitable option, as it will add nothing to the state economy especially at present when the state has control over 80 percent of the economy.
The only type of tax that can be imposed currently is the income tax but amount of collected tax will not be high”.
An economic and financial expert Thamer Al-Naqeeb said the imposition of any type of tax will negatively affect all components of the society including expatiates and citizens as well as companies.
He said applying a tax system in Kuwait is similar to a double-edged sword, indicating that taxes in the western countries are connected with provision of high-quality services in various fields including health and education. He added that enforcement of a tax system in the country requires suitable economic environment.