Comments on: Kuwait Inrtoducing Income Tax Law?

By: Mahesh Shantaram

Mahesh Shantaram — Wed, 31 May 2006 20:43:12 +0000

As the son of an immigrant worker who’s salary has moved upward only by about 50-100KD in the past 20 years, I am touched by the response of some Kuwaitis on the page. This is especially warm considering that the immigrant joe’s opinion of the average Kuwaiti is, shall we say, not too generous due to years of unfavourable policies. Heck, I just read in another blog, a British woman was gloating over being able to afford a maid in Kuwait for 40KD a month. Something very poignant about all this.

As an aside, the way taxation works in most countries is by a system of slabs. Something like this:
0 - 150KD: 0%
151 - 500KD: 5%
501 - 1000KD: 10%
1001KD and above: 15%

A person earning 1200KD would then pay:
0% on the first 150KD (0)
5% on the next 350KD (17.5)
10% on the next 500KD (50)
15% on the next 200KD (30)
= 97.500KD

This is a fair and successful system of taxation which works around the problems of a flat tax rate (which is only useful for sales tax and such things).

By: Yazeed

Yazeed — Wed, 31 May 2006 00:01:23 +0000

Yeah if they want to tax people, they have to show that they are serious about fixing the everyday things that really matter to people, the roads, electricity shortages, and water supplies are a main concern these days.

By: TweeZ

TweeZ — Tue, 30 May 2006 22:27:27 +0000

you know what they should do? Fix the damn roads! I swear, some places, like Salmiyah, there are parts that are hazardous to your car’s health! All of these pot holes and garbage on the streets create obstacles that recreate the Crystal Maze show when your driving!

By: Muslimartist

Muslimartist — Tue, 30 May 2006 20:26:39 +0000

I would primarily hope it would go into education, healthcare and other civic responsibilities, including campaigns for promoting health, and social etiquettes, etc.

Another thing it would need to go into would be the “financial reserve” for Kuwait’s future generations, as a buffer for when the oil runs out. I was told that the government has squandered all the savings of the future generations… so replenishing that would be a priority.

By: TweeZ

TweeZ — Tue, 30 May 2006 16:37:13 +0000

yeah your right, I think everyone should pay. But where is this money going to go? If you think about it, our government is well off thanks to the oil and there is no need to implement tax laws. Even though, I think that there are a few shortages here and their that could be addresed by our wealthy economy but no action is being taken. Will the taxing really make a difference? Again, nobody answered my question…..WHERE IS THIS MONEY GOING?!

By: Muslimartist

Muslimartist — Tue, 30 May 2006 16:26:15 +0000

Hiya,

I think that before income taxation takes place,t he Ministry of Labour needs to implement and strictly maintain a minimum wage rule.

It would be inhumane to tax the foreign laborers who make 15-20 dinars a month.

Another thing, I believe that citizens should also be included in the taxing system, if there ever is to be one. Let Kuwaitis start giving back to their country, instead of only take, take, taking.

In whole, I would prefer that there be no tax. But if it were to be, the above is my thought.

By: TweeZ

TweeZ — Tue, 30 May 2006 09:51:01 +0000

ok, to tax or not to tax, but what the fuck did they say it was for?! Nobody replied to that question! What sparked this whole thing? And why 10%?

By: The Flying Penguin

The Flying Penguin — Tue, 30 May 2006 09:27:04 +0000

TAX TAX TAX !!! it seems someone a “new comer” is looking for a bigger pay check hahahha (get it yazood)… its a great idea to tax foreigners but not all. I mean first of all those street workers, maids, drivers etc.. should be excluded, i mean isn’t it enough that they are getting paid much much below what they should be if they were to work in any civilized society.. I say tax those foreigners who work in companies, banks, teachers, doctors etc. those with a professional job, not the ones with the “inhumane” jobs.

By: The Stallion

The Stallion — Tue, 30 May 2006 08:24:58 +0000

I don’t remember which Arabic paper it was writen in but it stated the the Minister of Finance said that taxes will not be introduced!

By: Yazeed

Yazeed — Tue, 30 May 2006 06:33:37 +0000

Fawaz,
If you want to talk about inhumane activities, taxing 10% is not as bad or comes close to how these poor people are paid, there should be a way to structure the salaries of maids, drivers, and other low paying jobs.
In Saudi there is a minimum wage for each job, a maid 750 or 800 riyals (60-64 kd) at least, a driver 1000 riyal at least (80) kd, this would be the first step to take before u implement taxes on these poor people. I know workers in kuwait that get 30kd a month, and i heard that garbage men get about 20-25 kd a month (thats when they get paid).

Taxing is not inhumane, its the current laws that are. Taxes are coming, oil will not last forever, a small income tax and a few other small taxes will go a long way.

Mark,
To me the best option for now is targeting people who send money back home. Did you now that Saudi Arabia ranks 2nd in the world with the amount of money sent from foreign workers? We are behind the US. You are a foreigner and I wouldnt apply the tax to people like you cause you have a family here, and you spend you money here (and amazon :P). Thats if they want the tax for that reason, otherwise taxing everyone is fair.
The newspaper guy is just plain stupid, If person A makes 1000kd a month and is taxed for 100kd that leaves him with 900kd, if person B makes 900kd and gets no tax, that wouldnt be very fair. Person A will probably become a freaking terrorist or will try to overthrow the government or something.

By: Mark

Mark — Tue, 30 May 2006 05:54:19 +0000

yeah i read about this in Arab Times also. I didnt like the idea, they take 10% and what do I get in return that I am not getting in return now? Nothing.

One guy in the newspaper suggested this law should apply to people who earn 1000KD and up. The guy seems to think if u earn a thousand kd then you are rich and wouldnt mind getting 100kd deducted from your salary… what an idiot.

By: Fawaz Al-Daihani

Fawaz Al-Daihani — Tue, 30 May 2006 04:19:33 +0000

When you say an income tax on foreigners do you also include maids, drivers, garbage men, ones that work for the baladeya for very little, and so forth?
I think thats inhumane.. These people come to our country to earn a living and send money to their poor families and they don’t get paid too much.. For them its quite good money when you change it to their currency but imagine taking 10% of that?!?!?! Thats just not right..
And on top of that I am ashamed to say that my fellow counrtymen (not all but quite a few) treat them like shit, like their not even worth anything and like their not even humans.. This is just wrong..

Also.. If someone works hard to earn 1000kd a month and the government wants to take 100kd of that then were the hell is it going?!?!?!
Its not like we need to pay for anything.. il7amdillah 3ala kil 7al.. Allah rizagna ib khair oo ni3ma.. We have everything at our disposal.. free healthcare, free education, a roof over our heads, and even a good life..
So what is this 10% income tax for?!?!?!

By: Yazeed

Yazeed — Tue, 30 May 2006 01:31:19 +0000

i think they can own property in kuwait now, in saudi i think they can own it too, health care for foreigners; i dont know about that but i do remember seeing ads in kuwait for health insurance for foreigners for like 13 kd a year or something, so the government can pay that from the income tax. citizenship i dont think so, population growth in the gulf is high and the governments cant handle their own population in the long run, dont really seeing them giving citizenship unless they would be an asset to the country.

By: TweeZ

TweeZ — Tue, 30 May 2006 00:53:39 +0000

there is one thing that was not clear to me about this whole tax thing. True, it’s good for us, but what do they (foriegners) get in return? Free health care? Right to own property? Citizenship in the long run?
Cant think of other goodies, but there has got to be one.