Tax rise decision provides climate for exploitation

Cigarettes have been disappearing quickly from the shelves of retailers in Kuwait in anticipation of a huge tax increase, according to an Arab Times story.

The Gulf Co-operation Council states in November approved a 100 percent tax increase on tobacco products, but the decision has not been implemented, leading to allegations of hoarding and price exploitation by traders.

Kuwait’s Ministry of Trade and Industry has instructed its inspectors to conduct surprise raids at retailers to protect consumers from exploitation.

And the ministry has warned of imposing tough penalties on anyone proven to have violated the law by stockpiling cigarettes and thereby helping to create a scarcity and price pressures.