Tax $660m a year ‘sin tax’ target set by Kuwait By Nadim Kawach January 16, 2025, 5:58 PM Kuna Noora Al-Fassam, Kuwait's finance minister, did not identify the products to be targeted by the proposed 'sin tax' Tax on ‘harmful to health’ items Company income tax also planned Boost for non-oil revenue Kuwait hopes to raise 200 million dinars ($660 million) a year through a “sin tax” on unhealthy products as part of tax reforms proposed by the International Monetary Fund, the country’s finance minister said on Wednesday. Noora Al-Fassam told the official Kuwaiti news agency that her ministry was working on a new law for a “selective tax” that targeted goods that are harmful to human health, to boost non-oil revenue. The minister said that she hoped that the tax will bring in around 200 million dinars a year, but did not identify the products to be targeted. Al-Fassam also said there were plans to impose income tax on companies operating in Kuwait, though she did not provide further details. More taxes could shield GCC from protectionism, says IMF Kuwait’s multinationals tax to raise $825m a year, says minister Kuwait overhauls tax system and signs UAE treaty The minister’s comments came after a decision by Gulf Cooperation Council (GCC) members to adhere to so-called Pillar 2 standards sponsored by the Organisation for Economic Cooperation and Development, which mandate a 15 percent corporation tax on multi-national businesses. She said last week that the Kuwaiti tax would affect nearly 300 multi-national entities, 45 from Kuwait and other GCC states and 250 from other countries. Such a tax would raise nearly $825 million a year, Al-Fassam said. In December the UAE announced a 15 percent domestic minimum top-up tax on multinationals and Oman followed suit earlier this month. On Wednesday, Al-Fassam said multinational entities that will be excluded from the 15 percent tax comprise government institutions, non-profit and international organisations and pension and investment funds. She said the intention was that revenues from the tax would start to land in the 2027-2028 budget. A Kuwaiti think-tank said last week that the new tax was a step in the right direction to balance the budget and that it would help attract investment.