KUWAIT CITY Ministry of Finance has postponed the preparations for enforcement of Value Added Tax (VAT) until it is approved by the National Assembly, reports Al-Qabas daily quoting informed sources. They explained that the current situation is not favorable for the implementation of VAT within a short period. Ministry of Finance is not sure that the law related to enforcement of VAT will be passed by the parliament due to which the ministry took the above mentioned decision.
Preparations for VAT implementation require a large amount of money especially for preparing the accounting systems and appointing tens of new employees as well as organizing a number of training courses for the current employees. They affirmed that continuing the above mentioned procedures for readiness to implement VAT will be useless and just a waste of money if the parliament continues to stick to its current stance in rejecting the enforcement of VAT due to its negative impacts on citizens.