Kuwait plans taxes and sovereign bonds to balance budget, says minister

The sun sets behind buildings in Kuwait City. (AFP)
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  • Sale of bonds seen as temporary measure to address deficit

RIYADH: Bond sales and indirect taxation are part of Kuwait's strategy to address its budget deficit, Al-Jarida paper reported, citing the country's finance minister
Minister Khalifa Hamada made the remarks in response to a parliamentary question about the government's strategy.
Taxes are selective, “imposed at high varying rates on the selling price of goods harmful to public health and the environment, in addition to luxury goods specified by law,” in addition to value-added tax, Hamada explained.
There is need for cooperation between the government and the parliament "to allow the issuance of bonds, and the orderly and limited withdrawal from the Future Generations Reserve Fund, to cover the deficit as a temporary measure, pending the completion of the reforms contained in the government's work program," the newspaper quoted the minister as saying.