Mubasher: Returns from the value-added tax (VAT) are expected to help transform Kuwait’s budget deficit into a surplus in 2018, alongside other measures taken to increase the government’s revenues and trim spending, Alanba newspaper reported, citing official data.
The Kuwaiti government expects VAT returns to result in a surplus of KWD 1.36 billion, Alanba said, noting that, according to the data, government revenues from the VAT will rise to KWD 800 million in the budget once approved.
The government of Kuwait recently announced that its budget for fiscal year 2017/2018 will entail a deficit of KWD 6.6 billion, whereas revenues are expected at KWD 13.3 billion and total expenses are forecast at KWD 19.9 billion.
The VAT is implemented within the 5% range across all six countries in the GCC, based on a previous approval by the member states in late 2016.
The VAT implementation came as a response to a request by the International Monetary Fund (IMF) and under the framework of resolving the financial issues in the GCC following the sharp drop in oil prices.
