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Amiri decree allows raising charges for public services

KUWAIT: An Amiri decree was issued on Sunday allowing ministries to reprice and raise charges for public services, which have remained unchanged for the past three decades. Proposed by the government, the decree abolishes a 1995 legislation passed by the National Assembly prohibiting the government from raising charges for public services without the prior approval of lawmakers.

The abolishing of that legislation gives a free hand to authorities to reprice charges of public services, but after obtaining the approval of the Cabinet. Public services include electricity, water, communications, health and others, which have effectively remained the same since the law was passed in 1995.

The decree states that “the competent authority in each government body will determine fees and charges of public services and utilities in accordance with the laws regulating them and after the approval of the Council of Ministers”.

The explanatory note of the decree clarified that due to economic and social changes and the state’s need for flexibility in the management of financial resources and providing public services in a sustainable way, it was necessary to abolish the 1995 law, which barred the state from raising charges.

It added that the decree gives greater flexibility to government bodies to reprice public services, but without neglecting social justice or undermining the minimum standard of living. It said that after abolishing the law, government bodies will enjoy flexibility in assessing their services and reprice them in accordance with their cost and benefit. Any increase in charges must be taken only after the approval of the Cabinet.

Kuwait recently decided to impose corporate taxes on foreign and local companies with the aim to raise hundreds of millions of dinars, and is also planning to impose the so-called selective taxation to be on par with its Gulf Cooperation Council (GCC) partners, who have already imposed such taxes. Disputes between national assemblies and governments had prevented authorities from raising charges for public services. The National Assembly was suspended by HH the Amir in May for four years.

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