Kuwait Announces List Of Tax Free Goods Under GCC Agreement

by Lorys Charalambous, Tax-News.com, Cyprus

10 September 2003

The Kuwaiti General Department of Customs announced last weekend a list containing 417 goods and commodities that will be exempt from taxation in accordance with the terms of the Gulf Cooperation Council's unified customs area agreement.

In a statement released in tandem with the list, the Department also revealed that certain classes of goods not covered by the GCC agreement will be subject to a 5% tariff, an increase of 1% on the previous rate. Broadly, those goods and commodities which will be free from taxation include livestock, foodstuffs including fruit and vegetables and seafood products, cereals, tea and various pharmaceutical products.

The unified customs area of the Gulf Co-operation Council (GCC) came into effect on January 1 2003 and covers Kuwait, Qatar, Oman, Saudi Arabia, Bahrain, and the United Arab Emirates (including Dubai). The launch of the GCC customs union, which applies to more than 1,500 imported items signaled the birth of the Middle East's biggest economic bloc, with a GDP of nearly $320 billion in 2001, around 45% of the combined Arab economy.

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