(MENAFN- Kuwait News Agency (KUNA)) A professor of Public Law at Kuwait University (KU) underlined here on Wednesday the necessity of creating new alternatives and sources of the State's revenue through setting up oil derivatives plants.
Speaking at a seminar at the KU on Kuwait's need for new financial sources amid the current drop in oil prices, Professor Ibrahim Al-Humoud said that Kuwait can depend on exporting electrical power, through building plants, to countries such as Iran, Iraq and Syria, which are in a dire need of power.
Borrowing can be used as a factor to redress any state budget deficit since it finances the state's expending as a financial tool in all countries, he said.
He noted that French total debt is estimated at one trillion Euro.
Kuwait has been seriously affected due to the falling oil prices, he said, underlining the necessity of diversifying national income apart from oil.
This move, he said, could be achieved by creating new alternatives for state's revenues such as imposing taxes which are considered a sovereign State right.
"Kuwaiti society needs many years to raise awareness toward the concept of taxes," he said, noting the state should impose a gradual tax system on citizens.
Awareness campaigns should be launched for creating the concept of taxation, he indicated.
Kuwait used to depend on relatively high tax before the emergence of oil in order to secure state's internal, and external positions and to achieve food security, he said, noting that Kuwait's first state budget was set in 1938.
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