I will let the intelligent readers arrive to their own conclusions on how much sense this makes..and why it's only for Expats and not for the mega millions sent abroad by the locals.
Enjoy! 
http://www.arabtimesonline.com/news/pan … tance-tax/
KUWAIT CITY, May 29: The Legislative Affairs Committee in the Parliament will soon endorse the proposal to impose tax on expatriates' remittances, reports Al-Shahid daily quoting sources.
Confirming that the government and Parliament have expressed support for the bill, sources disclosed the proposal is to impose two percent tax on remittances below KD 100, four percent on remittances ranging from KD 100 to KD 500, and five percent on remittances above KD 500.
Sources said the tax collected through these remittances will go directly to the State's Treasury. Sources explained that tax will be collected through stamps to be issued by the Ministry of Finance while the money exchange companies and banks accredited by the ministry will be required to submit receipts to guarantee transparency of monitoring and auditing procedures.
Sources said any expatriate who will send money to his home country through other channels in order to avoid paying tax will be imprisoned for not more than six months and fined not more than KD 10,000.
Coming Soon - Remittance Tax in Kuwait for EXPATS only!
the way they see it is, expats are making money in the country, and that money is not being spent in the country, hence they should take a percentage when that money is sent out of the country. a form of "tax" if you will.
not sure i follow your jibe at locals sending "mega millions", in the end, they're locals, their houses and monies are in kuwait, hence they dont remit money abroad, and even if they did, they're still guaranteed to live here for life.
Here is another perspective.
Isn't it a bit hypocritical to tax people for sending money out of the country while making sure they are not allowed to invest locally? Yes, I know I can invest in theory, but I sure won't under the imposed conditions. And how about buying a property?
So what are we supposed to do, spend all our income on cupcakes?
Also, this certainly won't stop people taking the cash out with them within allowed limits, so this will mostly hurt the low income workers who are not allowed or can't afford to leave the country and are sending their money back home to feed their families.
As I constantly try to make sense of the world around me, I need to believe this is just a cunning plot to encourage expat workers to leave the country. If not, it is just plain sneaky.
I sure won't complain as it won't affect me. I said above who would be affected - the most vulnerable ones. Point is it wouldn't do any good for Kuwait.
But all this is moot now as this silly proposal has been scrapped like many others in the past.
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