Kuwait recognizes the economic reform plan that includes raising the prices of goods and services

March 14, 2016

Kuwait (dpa) - Deputy Prime Minister and Minister of Finance and acting oil minister in Kuwait Lance Saleh that his government approved today a close economic reform consists of six main points regarding the actions and supporting financial and economic reform in the medium term, a financial reform - redrawing the state's role in the national economy - increase the contribution of the private sector in economic activity - the participation of citizens to own projects - labor market reform and the civil service system and finally the legislative and institutional reform and support measures.

The Minister explained in a press conference this evening in the presence of the Minister of Social Affairs and Labor and Minister of State for Planning and Development India Subaih and Commerce Minister Dr. Yousif Al Ali to display the reform document, the program includes the development of corporate business tax rate of 10 percent and re-pricing of services and the application of VAT at a rate of five percent.

Saleh added that the number of small and medium-sized projects that will be funded over the next four years, nearly 2727 projects with a capital of 470 million dinars (562.1 billion dollars), pointing out that the Commission's public debt strategy continues to explore the budget deficit, either through a bond offering or withdrawal from the general reserve .

Saleh said that the central bank's policy on the exchange rate of prudent and well thought out and no coordination between the Ministry of Finance and the World Bank working paper containing proposals for the imposition of tax 10 ?? The companies and the imposition of VAT 5 ??.

Also included in the reform document presented by the Finance Minister today, raise gasoline prices, the unification of employees' salaries in accordance with the nine professional groups only, and raise expats visa fees, and a freeze on wages and salaries and not to increase them, and 15% reduction of labor support value, and the privatization of airports, ports, Press the government, stations electricity, hospitals, schools, and modify privatization law and lift the ban on the privatization of the oil industry and the health and education sectors and raise tax collection efficiency to increase revenue 10% and the elimination of government spending is affecting the achievement of abundance 10% and reduce bonuses committees by 50%, and cut spending on overseas training courses by 25% and raise electricity and water prices in January 2017 and to stop the establishment of government agencies and public bodies and the integration of new and the abolition of some agencies and ministries and public administrations and the integration and the abolition of some ministries and public bodies and departments, put 97 gas station in front of the young entrepreneurs.