Kuwait: New fees for public facilities and services

The Minister of Finance Fahad Al-Jarallah says the state is moving to impose new fees for the use of public facilities and services within the framework of starting to implement the projects included in the government’s work program. The emphasis is on the relevant government agencies in the event of pricing their services on the existence of the appropriate legal tool to impose fees.

He stressed that each entity is responsible for what concerns it in accordance with the laws of its establishment, and in a manner that does not conflict with law No. 79/1995 regarding the fees for the use of public facilities and services.

In response to a parliamentary question submitted by MP Muhalhal Al-Mudhaf, Al-Jarallah explained that the government’s work program for the 17th legislative term and within the first axis “Public Finance Stability” included a program to increase and develop state revenues. The program has three projects, which are launching a pricing mechanism for public services, the fees, and the violations (developed and renewed periodically), and issuing a general framework for reviewing and re-pricing the state’s real estate properties on a periodic basis that takes into account the principles of justice and productivity rates.

The intention is to reconsider the current fees. The reasons go back to what was previously explained in the first paragraph above, that the government’s work program includes the first axis of “stability of public finances” to increase and diversify state revenues with the aim of reforming the financial structure for the general public.

The Ministry of Finance has directed all government agencies to study and reconsider the fees imposed by each agency in accordance with the laws of its establishment and in a manner that does not conflict with law No. 79/1995 regarding fees and financial costs, and in exchange for the use of public facilities and services.

Al-Jarallah said, “The Ministry of Finance is currently reconsidering ministerial resolution No. 40/2016 regarding issuing a list of fees for the use of private real estate state properties and service fees.”

In response to another question by Al-Mudhaf, Al-Jarallah explained that the Public Institution for Social Security does not charge fees for the services it provides, other than what is stipulated in article 95 of the Social Security Law issued by the Amiri Decree Law No. 61/1976.

This includes the fees for issuing the certificate indicating the payment of the subscription to the institution amounting to KD 0.500 for each certificate or taken from it. The government agencies responsible for issuing specific licenses or certificates must condition the issuance of these licenses or certificates or their renewal on the applicant’s submission of the aforementioned certificate or an extract thereof.

Imposing any increase or establishing a new fee requires a legislative amendment, and the institution has no intention of doing so.