Tax on money transfers by expatriates is constitutional, confirm panel
The National Assembly’s financial and economic affairs committee yesterday reaffirmed that imposing a five percent tax on money transfers by expatriates to their home countries does not violate the constitution.
The committee bluntly said that there is nothing in the constitution which obliges achieving equality between Kuwaitis and expatriates and justice in imposing taxes.
Citing article 48 of the constitution, the panel insisted that imposing taxes on remittances by expats does not violate justice and equality.
In January last year, the legal and legislative committee rejected a draft law submitted by MP Safa Al-Hashem to tax expat remittances, saying it is unconstitutional. The government also rejected the bill because it involves constitutional suspicions, while the Central Bank insisted it is against the national economy.