TaxSavvyKW

Excise tax in Kuwait

Does Kuwait charge excise on tobacco or sugary drinks?

The situation

There are no excise taxes in Kuwait per PwC's July 2026 review.

The law

  • GCC VAT Framework Agreement (signed 2017): Kuwait status: Kuwait has not implemented VAT; a draft law is under discussion; there is no excise tax

What it means for you

PwC's July 2026 review states there are no excise taxes in Kuwait. That differs from Bahrain, the UAE and Saudi Arabia. Tobacco and its products face a higher customs duty instead of excise.

What to do

  1. Price without excise.
  2. Check customs duty.
  3. Watch for change.
  4. Review yearly.

We can do this for youVAT and Business Profits Tax readiness review (proposals, not in force): KWD 500

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