Kuwait has postponed the implementation of value-added tax (VAT) to 2021 but will introduce excise tax, the parliament’s budget committee said in a statement on Tuesday.
“Implementation of value-added tax in Kuwait will be postponed until 2021, and that the finance ministry saw the need to expedite measures for excise tax on select products such as tobacco, energy drinks and carbonated drinks,” the statement added.
Although the Gulf nations had agreed to introduce VAT at a 5 percent rate at the start of 2018, only Saudi Arabia and the United Arab Emirates have introduced the tax so far.
Meanwhile, Kuwait’s finance minister Nayef Falah Al-Hajraf said on Monday said he expected parliament to approve the excise tax during its next session, which starts in October.
The Gulf nations agreed to impose an excise tax of 50 percent on carbonated drinks and 100 percent for tobacco products and energy drinks.
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