The parliamentary Legislative and Legal Affairs Committee on Monday unanimously rejected the proposal to impose tax on remittances of expatriates because it is unconstitutional.
Some MPs had earlier presented the proposal which, they believe, would contribute about three percent to national income.
They argued the country has the right to collect this tax, especially since the remittances of expatriates are estimated at KD 15 billion per year.
Other MPs pointed out the proposal is illegal, as the tax amount is more than the Zakat (2.5 percent) which is collected once a year while the tax on remittances will be collected monthly.
They warned that this proposal, once implemented, will prompt expatriates to go through illegal channels to send money back home.
Source : Arabtimes
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