Kuwait Approves GCC Excise Tax Draft Law and Refers It to the Amir
The Kuwaiti Council of Ministers approved a draft decree-law on the GCC Selective Tax Agreement and its amendment annex, referring it to the Amir without specifying an implementation date.
In its weekly meeting chaired by Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, the Kuwaiti Council of Ministers approved a draft decree-law regarding the Unified GCC Excise Tax Agreement and its amendment annex, and referred it to the Amir of the country, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah.
The draft decree has not yet been published, and no start date for its implementation has been announced. Furthermore, the circulating tax rates on tobacco, energy drinks, and carbonated beverages have not been fixed in an official text, meaning that the final prices of these goods remain unsettled until the law is enacted and published.
The Council stressed the need to adhere to the timelines of development projects, including the maintenance of the main highway network and the cleaning of the rainwater drainage network. This followed a visual presentation by Minister of Public Works Dr. Nora Al-Mashaan regarding road maintenance, traffic sign installation, and the development of the road network and infrastructure for the new passenger terminal at Kuwait International Airport, in addition to comprehensive maintenance of internal streets.
The Council stated that these directives aim to accelerate the pace of work and raise the quality of maintenance work, ensuring the safety of road users, reducing traffic density and congestion on highways and internal roads, and facilitating traffic movement across the country.
What do these terms mean?
Excise Tax: A tax levied on specific goods, such as tobacco and sweetened beverages, aimed at reducing their consumption and generating revenue for the state.
Decree-Law: A legislative text issued by the Council of Ministers or the government in certain legal systems, requiring approval or ratification by the head of state before taking effect.
Gulf Cooperation Council (GCC): A regional organization comprising six Arab Gulf states, coordinating among them on economic, commercial, and regulatory policies.
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