Kuwait to cut tax for foreign firms

  KUWAIT (AFP) — Kuwait's parliament adopted a law on Wednesday slashing corporate tax rates for foreign companies to 15 percent from 55 percent in a bid to attract more investment from abroad.

The initiative, which has been under discussion for several years, will come into force once it is approved by the emir of the oil-rich Gulf state, Sheikh Sabah al-Ahmad al-Sabah.

Kuwait struggles to attract foreign investment, with inflows of about 300 million dollars in 2006, compared with 18.7 billion dollars for the United Arab Emirates, Finance Minister Mustafa al-Shamali told parliament.

The law, which will apply to foreign companies operating in the emirate as well as to Kuwaiti firms which represent foreign firms exclusively, is one of a series of measures to boost foreign investment and invigorate the economy.