Looks like I’ll have to sell my other Ferrari!

ownership of cars limited

To reduce the negative externalities brought about by private transport, Kuwait plans to adopt a new policy limiting the amount of cars a household can own. The ‘genius’ (and there’s quite a bit of sarcasm here) solution that they’ve come up with is to limit the amount of cars a Kuwaiti can own to two, and an expat to one. Surely if they were truly looking out for the future generations, they would have it the other way around – it is the expats who need to be allowed the greater number of cars so that they’re able to drive to work, and do the jobs that the Kuwaitis cannot, and do not want to, do. The Kuwaiti Government plans to tax expats owning more than one car a fee of 100KD, but whether this is a one-time thing or not remains to be determined.
Kuwait is home to 2.2 million foreigners, making up two thirds of the country’s population. Of those foreigners, the ones who don’t own cars, or more than one car, are most likely to be unskilled workers and domestic helpers. Therefore, the tax burden will fall primarily on the skilled labourers, and should they decide to relocate,  the consequences of this brain drain could be very damaging to the Kuwaiti economy. But Kuwait’s got oil and money, so yolo.

(PS – since I haven’t heard a whole lot about this, I’m not sure how reliable the article is. Still, even if it isn’t true, it’s still something to keep in mind when answering a question about policies to reduce negative externalities of private transport; the evaluation part will be a breeze.)


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