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24 The Investor

to start imposing VAT in the GCC countries, the start of implementation. In case this is
but it was left to each country to ask for an met, Kuwait will be ready to impose the tax
extension of implementation for one more and we will take all measures in coordination
year, according to their circumstances, and with the commerce and industry ministry
their readiness to impose them. and other concerned departments in the
state, in order to limit any unjustified price
The Kuwait constitution forbids the increases using this tax as an excuse.
imposition of any tax in Kuwait without
legislation, so it is necessary for the National As for how VAT will affect investment, the
Assembly to approve the imposition of VAT. agreed rate is 5 percent, so its effect will be
Each state must make sure accounting and limited. As it is a tax at the regional level,
other necessary logistics are in place before its effect on the geographic distribution of

Issue 1 October 2017