(MENAFN- Arab Times) The government is considering imposing taxes on exported products that are made of subsidized local items, reports Al-Anba daily quoting governmental sources.
They explained that discussions were carried out during a recent governmental meeting with the International Monetary Fund (IMF) regarding a new method for redistributing governmental subsidies.
They agreed to impose taxes on companies and factories that use subsidized items for manufacturing products, which are then exported overseas.
These companies and factories take advantage of the governmental subsidies for reduced production costs while these products are sold abroad particularly in GCC countries for competitive prices.
The sources said the Gulf Chamber of Commerce has rejected the competitive advantage that Kuwaiti subsidized products have in its markets especially since a tax of 8 percent is imposed on Gulf subsidized products.
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