KUWAIT CITY, May 9: Kuwait’s days as a tax haven might end soon, since legal steps have been taken to impose income tax on individuals and companies, reports Al-Rai daily quoting sources.

In a draft bill said to have been prepared by the Fatwa and Legislation Department, the proposed tax for individuals is 10 percent of their income, which includes capital, industrial, commercial and real estate activities.  Sources said those earning less than KD 30,000 annually (KD 2,500 per month) will not be required to pay income tax due to the exclusion of what the department refers to as ‘family burdens’ — KD 30,000 per annum for those who are single and KD 32,000 for married persons.

Meanwhile, several lawmakers opposed the idea of imposing taxes on citizens and cited various reasons for the same, reports Al-Rai daily.

MP Saad Al-Zunaifer rejected the idea outrightly, but added that the country would benefit if companies and industries are taxed.

His colleague MP Salem Al-Namlan too strongly rejected the proposal, saying “as it is, the citizens are suffering due to hike in prices of almost everything and so, there is no need to burden them further.” He said companies can be taxed, but only after conducting proper studies.

Furthermore, MP Hussein Mezyed stressed lawmakers will oppose the proposal on imposing taxes on citizens and said “it is not the right time for such a proposal.”

MP Abdulrahman Al-Anjari affirmed that taxes are acceptable in real democratic systems and “since we are not following real democracy, the tax system cannot be accepted without establishing a proper accounting system.” He, however, added that “we should be open to talk about taxes.”

MP Khalid Al-Tahous rejected the idea, saying it would increase the suffering of citizens, while MP Al-Saifi Al-Saifi called on the government to improve citizens’ standard of living by carrying our development projects.  - arab Times