(MENAFN- Arab Times) Even though a decree has been issued to reduce the tax to be paid by foreign invekustors from 55 percent to 15 percent in order to encourage foreign investments in Kuwait, about 15 local agents of foreign companies have not paid taxes, which will negatively impact the state budget, reports Al- Shahed daily quoting informed sources.
They lamented that these agents have been gaining profits worth billions and their revenues have increased but they have not been paying their comparatively-small dues to the state. The sources explained that the lack of deterrent laws and strict sanctions against the violating foreign companies have aggravated this problem.
Last year, more than 35 foreign companies of different sectors in the Kuwaiti market, which work either directly or in collaboration with local companies, have not paid their taxes, which are 15 percent of the total revenues. Therefore, the total amount of taxes that foreign companies failed to pay the state last year is KD150 million. They revealed that Ministry of Finance has only filed cases against these companies in demand for payment of taxes but no decisions were taken to force them to do so. The sources added that the most prominent sectors involved in this issue are restaurants, car companies, electronics, clothes and accessories.
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