A senior Kuwaiti MP has urged the government to approve a draft law to impose taxes on expat remittances.
Kuwaiti MP Safa Al-Hashem, who has been appointed the head of the National Assembly’s financial and economic affairs committee, said lawmakers will push to approve the bill, Kuwait Times reported.
The bill states that foreign workers would be taxed on their money transfers abroad, on top of normal commissions and charges by banks and exchange houses, based on the amount sent.
Transfers of up to KD99 ($330) would be taxed at 1 per cent, transfers of KD100-299 ($334-$997) at 2 per cent and transfers of KD300-499 ($1,001-$1,664) at 3 per cent. Those of KD500 ($1678) and above would be taxed at 5 per cent.
The draft law received strong support from lawmakers who complained that expats were sending most of their money to their home countries. Foreign nationals are not allowed to buy a property or launch small businesses in Kuwait at present.