‘Kuwait lacks VAT setting’
Local conditions not business-friendly: Al-Badr
KUWAIT CITY, March 13: Implementation of the tax system requires a rich business environment that provides sufficient tax revenues, but this environment does not exist in the country, reports Annahar daily quoting Supreme Council for Planning Member and former Board Chairman of Gulf Bank Ali Rashid Al-Badr.
Speaking to the daily, Al-Badr warned the consumers will bear the consequences once the value added tax (VAT) is implemented. He said most citizens depend on salaries and pensions, so it is expected that they will demand for salary increment. He asserted such demands will be endorsed by lawmakers who will put pressure on the government to grant the increase. Eventually, the government will succumb to pressure and the salary increment will eat up tax revenues, he added.
He argued the implementation of tax will increase the government’s expenditures due to the need to hire a large number of accountants, auditors and lawyers.
He stressed the State controls 75 percent of the economy and it has no intention to give up its huge share in favor of the private sector just to develop the business environment.
He said the government floated tenders which are not attractive for investors because the expected
return is very low. He added most of the projects are nothing more than covered borrowing; in other words, the government floats tenders for the private sector to implement projects instead of asking for loans directly.
He also criticized the BuildOperate-Transfer (BOT) system as it kills investments. He pointed out many investors want to be involved in permanent projects which can be developed and handed over to their successors, while the BOT system gives investors the opportunity to manage projects within a certain period but these projects will eventually go back to the State.
Decision opposed:
Constitution expert and professor of Public Law at College of Law in Kuwait University Dr Mohammad Al-Fili says the decision taken by the National Assembly to assign Kuwait Anti-Corruption Authority to head the committee in charge of investigating the reasons behind corruption as well as the receipt of orders by the authority are against the concept of independence granted to the authority by law, reports Aljarida daily.
Al-Fili said it would be better if a memorandum of understanding will be signed between the Cabinet and Kuwait Anti-Corruption Authority whereby the authority studies cases related to corruption and refers the study to the Cabinet.
He stressed that Kuwait AntiCorruption Authority is free to listen to the opinions of experts from various state institutions in the process of preparing its reports.
A number of lawyers agreed with the opinion of Fili, affirming that Kuwait Anti-Corruption Authority is a monitoring body and it should not head an official team that is
performing an executive task.
Legal advisor beaten:
A US legal advisor of Egyptian origin working for an unidentified embassy was severely beaten by a diplomat and some staff members inside the embassy compound, reports Al-Anba daily.
According to a security source, the advisor was beaten following a misunderstanding between the advisor and the diplomat.
When the victim contacted the security authorities, police patrols and an ambulance rushed to the embassy but the angry staff prevented the police and paramedics from entering the embassy compound.
After several attempts and negotiations, police and paramedics went inside the compound and carried the advisor to the ambulance.