Kuwait's rent-waiving decision soon for those with State property deals

Exemption to be calculated from April 1

  
Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017.

Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017.

Getty Images/Emad Aljumah

KUWAIT CITY: Ministry of Finance has adopted the decision to exempt tenants contracting with State property from the rental value or fees for licenses to use units, public markets and others whose activities have been suspended, as a precautionary measure to confront the spread of the new coronavirus.

The informed sources indicated the waiver decision, which will be announced in the next few days, will be calculated from April 1 and extending until the government announces the end of the corona pandemic, provided that the exemption period is not less than six months.

The same sources reported that the State property sector is currently working on a calculation method for the waiver, especially as the mechanism for paying State property dues is done annually, in addition to setting up special measures to verify application of the waiver to other parties contracting with tenants from the State.

They indicated the exemption decision will not include chalet and farm contracts, considering they do not belong to the affected commercial sector, stressing the beneficiaries of State property exemptions are the ones involved in the following activities: Markets such as Al-Mubarakiya, Al-Munakh, Al- Kuwait, Al-Dawliah, Al-Mutahidah, and other markets managed by others, provided that the rent is reduced by the same proportion, reports Al-Qabas daily.

Exempting
And, exempting all occupants of rented units in various cultural centers, including the Jaber Cultural Center, Al-Shaheed Gardens, and all sites related to the Amiri Diwan from the rental value, according to the contracts concluded.

They emphasized the adoption of rent waiver decisions on State property will contribute to the economic stimulus process, especially as the majority of the contracts to be exempted are markets and commercial complexes.

This will have a significant impact on the commercial sector, such as retail stores, restaurants and corporate offices, they said. In a related development, concerned sources revealed that the Public Authority for Industry is still studying the mechanism of exemptions for the industrial sector, as there are beneficiaries whose work did not stop during the complete or partial ban period, such as factories for foodstuffs and many others. In return, there are activities that completely stopped during the ban period and the damages are enormous.

It is expected that the Public Authority for Industry will announce the exemption mechanism and extend it in the coming weeks. Cabinet recommended the Public Authority for Industry to reduce fees on its lands in some areas, such as: Shuwaikh, Al-Rai, Sabhan, Mina Abdullah, Ahmadi, Fahaheel, and Sharq, provided that the rent for their tenants be reduced. It is noteworthy the Council of Ministers had directed government agencies to exempt the tenants contracting with them from the rental value or fees for licenses to use public units or markets and others whose activities were suspended as a precaution.

He stressed the need for the tenants of State property to exempt their tenants so as to reach the largest number of beneficiaries and to reduce burdens resulting from the precautionary measures taken by government in the fight against the novel coronavirus. Concerned sources confirmed that Cabinet’s recommendation related to BOT contracts is still being studied and no decision has been taken in that regard until now, given that Cabinet alone has the right to extension.

It is worth noting the Council of Ministers in May recommended the extension of contracts registered under the “BOT” system for a period of 10 years without reducing the annual rent, on condition that the rent is reduced. And, it requested all occupants of rented units in all cultural centers and Al-Shaheed Gardens be exempted from the rental value for one year, according to the contracts concluded with them, as of March 2020.

 
 

© 2020 Arab Times Kuwait English Daily. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.