Remittance tax is a fee for expats using govt services

Monday, April 16, 2018

The parliamentary financial affairs committee said that the aim of taxing expats’ remittances is to find new sources of income and it must be considered as a fee for the educational, health and other services the state provides them.

The committee also believes that expats have access to subsidized goods such as fuel, gas and electricity, and that this tax will eventually affect the quality of the services as a whole.

The parliamentary legislative committee unanimously rejected all points raised againts the tax proposal. Earlier, the Central Bank had raised objections for this proposal and said the proposals have some technical and financial loopholes that should be reconsidered and dealt with. The Central Bank pointed out that the total figure of KD 4.14 billion reported as expats’ remittances is misleading, as many expats have been making remittances on behalf of citizens for trade and commercial reasons. The bank explained these remittances include sums sent to non-labor exporting countries such as the EU, the US and the UAE.

Furthermore, the Central Bank noted that taxing expats’ personal remittances will affect domestic helpers and lead to demands of pay hikes. It also warned that taxing commercial remittances will lead to an increase in prices, which will negatively affect citizens. The bank also warned that such taxes will force expats to make illegal remittances and create a black market that will affect the money exchange market and weaken the Central Bank’s financial control.


Express your comment on this article

 
Ansari
Posted on Tuesday, April 17, 2018

I am ready to pay taxes but only one condition....
I need to be treated as taxpayer's treated in United States or Europe or Australia.
In those countries whoever pay taxes....they get free medical treatment and free education for children and right to buy property.
I am paying 51 kwd every year as health insurance but what is the benefit for me????
On every hospital visit...i need to pay 2 /5 kwd and what i am getting, only a panadol.

jinu simon john
Posted on Tuesday, April 17, 2018

Dear All,

Central bank has rightly said it .

regards

jinu simon john

Loyal Expat
Posted on Tuesday, April 17, 2018

Dear Parliamentary financial affairs committee

This is our hard earned money which we're not getting by drinking gava, smoking sheesha or playing around with our job. Please don't find means to steal from our small income in the name of lame excuses like educational, health and other services provided by the State.

If this decision is implemented this country will witness the biggest decline in the money exchange business. Its easy to make statements but pls do think about the aftermath also.

We wish to work in this country as a loyal expat bound by the state law without involving in any illegal practices.

Regards

Loyal Expat

Slave of Allah
Posted on Tuesday, April 17, 2018

Just Read This Hadith & Follow:

Once he said to his wife: "0 'A'ishah! Never turn away any needy man from your door empty-handed. 0 'A'ishah! Love the poor; bring them near to you and God will bring you near to Him on the Day of Resurrection". He also went much further on to say: "Seek me among your weak ones, for you are given provision, or you are given help only by reason of the presence of your weak ones". (Rahman, Encyclopedia of Seerah, VOL. VIII, p. 151) Allah Almighty is Kind, and the Prophet imitated Allah's example in its perfection by showing kindness to his servants and all creatures without any regard for their beliefs, color or nationality. The Prophet said: "Allah is kind and likes kindness in all things" (Bukhari, 6601).

Slave of Allah
Posted on Tuesday, April 17, 2018

What about the Expats subsidy, as we are teh one who is paying everything including the traffic fines/medical/insurance/etc etc, what benefits are we getting, is this service mentioned as per the Islamic sharia,always targeting expats,Kuwait has Own the Humanity Award, but the law always targeting the expats.Have any MP thought how to develop the Country instead of targeting expats think about the Country development, why dont you people stop purchasing the Cars from others Countries,why cant Kuwait start own home Manufacturing of Cars etc.Try to give the preference for Agricultural,3.5 millions expats insurance money 50Kd X 3.5 million,where is that money?stop harassing us,try to follow the life of Our Beloved Muhammad Nabi Sallallahu alaihi wasallam, the life is too short so please dont squeeze the human,if any one start cursing from the heart In Shaa Allah sure Allah will listen there pain,when we die if we wont have one good deed what we do.Just Thanks for Allah Subhanavotla what ever you we have,May Allah give Hidaya.

Suresh
Posted on Monday, April 16, 2018

Cannot pay a single fils.
Know how to send money.

deepak
Posted on Monday, April 16, 2018

Find some other way of resources for the country. You say Govt services , you are right, but what about service charges of remittances collected by exchange companies and banks. Are they paying you taxes for that collection. Sure big NO than why are asking additional charges as Govt charges. I feel it is wrong and you must stop it before it is too late if foreigners over react it.

PENCHAL REDDY
Posted on Monday, April 16, 2018

we pay for insurance For 50 kd where is it? Now put Tax Remaitence for Expats Government told this tax expencnce for health and education. medical fees already hiked.

peacemaker
Posted on Monday, April 16, 2018

Alhamdulillah, few sensible people are sitting at top of financial tree of kuwait.

EXPAT IN KUWAIT
Posted on Monday, April 16, 2018

MR, MINISTER 50 KD FOR INSURANCE FROM 3.5 MILLION EXPAT

3.5 X 50 = 175 MILLION KD WHERE YOU IMPLEMENT THIS MONEY THEN 2 KD EXTRA FOR CLINIC AND WHAT EXPAT GET OPENED AND ADOL MEDICINE FOR ALL.
MILLIONS OF KD FINE PER MONTH ON TRAFFIC
VISA FEE FAMILY VISA FEE AND SO ON
SALARY FREEZE LAST 12 YEARS BUT RENT AND OTHER EXPENSES INCREASE
DO YOU PLAN TO GIVE PENSION LIKE EUROPEAN COUNTRIES THEN PUT TAX OTHERWISE IT IS NOTHING BUT BURDEN ON EXPAT

Rulesh
Posted on Sunday, April 15, 2018

Tax should apply for Employer not Employees

Prasad
Posted on Sunday, April 15, 2018

What educational support Kuwait giving to Indian students ? All students are paying heavy fee to schools and apart from that additional tution fee also paying.

In the name of health care, already KD50 collecting from expats as health insurance. And again expats need to pay at hospitals for each service.

Regarding fuel, and electricity, the price of those items are already increased.

ABC
Posted on Sunday, April 15, 2018

Remittance tax is a fee for expats using govt services ? It must be considered as a fee for the educational, health and other services the state provides them.

Dear
The parliamentary legislative committee
1 If this is the fee for Health then what is this Public hospitals and polyclinics in Kuwait collecting the increased fees for services offered to expatriates. The new fees to local medical facilities, which include charging KD 5 for visiting the Emergency Department of general hospital, KD 10 for going to outpatients clinics, KD 10 per day for inpatients, KD 30 for staying at the Intensive Care Unit (ICU), KD 50 for the private room and KD 200 as deposit. As for maternity, KD 10 will be collected per visit, in addition to KD 50 paid for normal delivery.

Samad
Posted on Sunday, April 15, 2018

Justification of paying tax for using subsidized services is not correct. Expats accepted the salary offered by the companies considering the available facilities in Kuwait. Hence, it is not justified to tax for those existing people. Otherwise, they would have asked 5 % more salary during the employment process.
Taxing for new employees is ok because they have an opportunity for asking more salary or accept the less salary by way of giving tax.

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