Kuwait Eyes $1.6 Billion Boost from Revised Service Charges
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Shamini
- . May 22, 2025
- . Update: May 22, 2025 12:33 am
Nearly KD500 million ($1.6 billion) in new revenue is on the way for Kuwait after it agreed to increase the fees for various government services. It was introduced after a decree from the Emir to make the country’s finances more secure as oil prices change. In January 2025, the decree gave ministries the ability to update service fees without first getting parliamentary agreement, since many of the fees had not been updated in nearly three decades. Those changes require approval by the Cabinet before they can be put into effect.
Public services targeted for fee hikes include:
- Electricity and water usage
- Healthcare services
- Communication services
- Visa and residency services
Kuwait’s large number of expatriates use these services regularly since they are the majority of the population. This is part of an overall effort to fix Kuwait’s budget deficit and rely less on oil income which covers nearly half or 44%, of its economic activities.
In addition to the fee hikes, Kuwait anticipates:
- $825 million from a new 15% corporate tax on multinational firms
- $660 million annually from a proposed sin tax
