- Taxes weaken the financial stability of the state
- The law poses risks to Kuwait’s international reputation
- It weakens the ability of Kuwait to combat money laundering
- Controlling the emergence and growth of black market in the banking sector will be difficult
- Controlling the movement of remittances from the banking sector will be difficult
- It will directly impact the operations aimed at attracting foreign investments
- The mechanism for applying taxes and the relevant work processes in the banks to carry out the deduction process during the remittances are not clear
The remittances of expatriates in 2017 reached a total of KD 4.1 billion. However, compared to the remittances worth KD 4.56 billion sent in 2016, 2017 registered a decline of ten percent.
In the Basel Anti-Money Laundering (AML) Index of 2017, Kuwait came third among the Gulf countries and fourth among the MENA countries in terms of fighting money laundering and financial terrorism.
International financial institutions are warning against imposing taxes on the remittances of expatriates. The International Monetary Fund (IMF) stressed in its report that levying the remittances of expatriates will have negative impacts on the private sector, and will increase the cost of production.