KUWAIT: Adopting taxation policies will help enhance public services and raise the patriotic spirit of the country, said an economic expert. Hajjaj Bokhathour made his comments following a recent news report on the likelihood of the Kuwaiti government to adopt an income tax policy as part of the 'Vision Kuwait 2035' development plan. "Taxation improves self censorship among citizens and will help reduce the culture of consumption in the society," Bokhathour told Kuwait Times.

The expert said that the government needs to adopt a number of policies before starting taxation. "First, they need to raise public awareness about the importance of taxation and how it can enhance the services provided by the government," Bokhathour said.

Meanwhile, the government needs to start by imposing service taxes and enhancing consumer protection legislation in order to make sure tax incomes are used to provide better services for consumers.

Bokhathour explained that imposing service taxes on companies will make them search for ways to maximize the efficiency of their services by reducing cost.

He argued that due to the small size of the Kuwaiti market, anti-monopoly regulations must be considered within the taxation policy so that companies with monopolies will pay more taxes to the government. "The good thing about taxation is that it can be tailor made to suit any situation," Bokhathour noted.

Although imposing service taxes in the United Arab Emirates (UAE) increased the cost of living in that country, it also helped to offer better services and provided the government a better infrastructure. This is a very close example.
A number of MPs already expressed their refusal to impose an income tax policy in the country. Meanwhile, the argument over the controversial privatization law continues in the National Assembly. Its first reading was approved with 33 votes in favor of the bill. - Kuwait Times