Sources said any expatriate who will send money to his home country through other channels in order to avoid paying tax will be imprisoned for not more than six months and fined not more than KD 10,000.
It is worth mentioning that the total amount of remittances in the last five years reached almost KD 19 billion which is equal to the budget of the State for one year. The Legislative Affairs Committee in the Parliament will soon endorse the proposal to impose tax on expatriates’ remittances, reports Al-Shahid daily quoting sources.
Confirming that the government and Parliament have expressed support for the bill, sources disclosed the proposal is to impose two percent tax on remittances below KD 100, four percent on remittances ranging from KD 100 to KD 500, and five percent on remittances above KD 500.
Sources said the tax collected through these remittances will go directly to the State’s Treasury. Sources explained that tax will be collected through stamps to be issued by the Ministry of Finance while the money exchange companies and banks accredited by the ministry will be required to submit receipts to guarantee transparency of monitoring and auditing procedures..
Source : Arabtimes