In Kuwait, Cash Vehicle Sales Are Subject To Penalties And Fines
In a significant move to regulate the sale of vehicles, Commerce and Industry Minister Khalifa Al-Ajeel has issued a decision to ban cash transactions for vehicle sales, as well as for brokers selling light and heavy vehicles on commission. The decision, which was published in the official gazette Kuwait Al-Youm, will come into effect three days after its issuance.
Penalties for Violating the Law
The penalties for those violating this decision are outlined in Article 13 of Decree Law No. 117/2013. They are severe and depend on the nature of the violation:
Fines ranging from KD100 to KD1,000 for violating clauses one and two of Article One.
Jail sentences of one month to two years and/or fines between KD500 and KD5,000 for violating clauses three and four. Additionally, the violator's goods and tools may be confiscated, and the vehicle used in the crime can be seized.
Other penalties include:
Violations of Clause Two: Jail sentences of one to six months and fines between KD50 and KD1,000.
Violations of Clause Three: Jail sentences of three months to three years and fines between KD500 and KD3,000.
Closure of Establishments
The law also grants the Ministry of Commerce and Industry the power to temporarily close any establishment where violations have occurred, with the possibility of reopening depending on the court's decision. In the case of repeat offenses, penalties are doubled, and the establishment's license may be permanently revoked.