KUWAIT: Kuwait's finance ministry has formed a special committee to implement the value added tax (VAT), while its experts helped the committee frame the VAT law, PricewaterhouseCoopers (PWC) said. PWC also noted that the Kuwaiti government is currently moving towards imposing VAT and that it had made a high-profile briefing of its transactions after fully studying VAT's impact on the national economy and evaluation of its implementation in Kuwait. PWC also said the IMF had urged Kuwait to move forward in terms of implementing VAT, after it was implemented in UAE and Saudi Arabia at the beginning of this year.

In collaboration with PWC, the Investment Companies Union (ICU) invited all concerned parties to a conference titled 'Problems and Best Practices on Implementing VAT'. Responding to criticism of VAT and doubts surrounding it, the taxation and planning manager at the finance ministry Osama Al-Qassar stressed that as part of a Gulf Cooperation Council (GCC) effort, the ministry has been working for 10 years on implementing VAT, adding that it would not be imposed immediately once the law is passed. "A six to 12-month grace period will be given," he assured, pointing out that the ministry had met with various economic sectors including banks, investment and oil companies, gold merchants and others to gauge their opinions and suggestions. Qassar stressed that once the law is passed, companies would have to comply to avoid the penalties and fines set by the law.

Housing projects

The Public Authority for Housing Welfare's (PAHW) deputy director for design and planning Nasser Khoraibot said the authority has made a substantial shift in its projects by shifting from the mere construction of regular areas to building integrated cities including commercial, investment and industrial zones. Khoraibot said the authority is fully committed to its declared strategy of distributing 12,000 housing units a year, and stressed that this strategy managed to win citizens' trust after waiting times were reduced from 15 to only three years.

In addition, Khoraibot said once this five-year plan is concluded, the new Nawaf Al-Ahmad City would be built during the following plans to the west of Mutlaa City, and it is expected to include 52,000 housing units. He also stressed that a housing plot will not be less than 400 sq m, especially after the authority stopped building houses and chose to provide citizens with land so that they could choose the designs they want.

Commercial licenses

The Ministry of Commerce and Industry (MoCI) is expected to issue a decision within the next few days on exempting citizens with disabilities from the fees of issuing commercial licenses.

Hajj convoys

Manager of the Hajj Affairs Bureau Mohammed Al-Mutairi announced that 49 hajj convoys had been approved for this year's season, and upon a directive issued by the Saudi hajj ministry, pilgrims' registration will start early this year. Mutairi said accredited hajj convoys will start receiving applicants to register them in the e-hajj program, which automatically files a hajj leave for employees. He also warned against using unregistered and unofficial hajj convoys, noting that those operating such convoys will be punished by up to one year in jail or up to KD 50,000 in fines.

By A Saleh