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PHOTO BY ARCHIVE
DUBAI – A UAE official sought to allay fears that the UAE government may raise the current rate of Value Added Tax (VAT) in the country or introduce income tax.
Obaid Al Tayer, Minister of State for Financial Affairs, said the UAE has no intention of raising VAT or excise tax in the medium term.
“If you’re referring to the next five years, we don’t see anything [relating to] increasing the VAT rate or the excise rate. I also want to confirm that there aren’t any studies or any legislation regarding introducing income tax,” Al Tayer told reporters in Dubai on Saturday (February 10).
A five percent VAT on goods and services was rolled out in the UAE on January 1, while excise tax was levied on tobacco products, energy drinks and carbonated beverages on October 1, 2017.
Al Tayer, however, said that the Ministry of Finance is working on introducing corporate tax, but that the ministry is still in the “early stages of studying the [corporate] tax legislation”.
A report from S&P Global Ratings in late January suggested that some GCC countries may double their VAT rate from the current 5 percent to 10 percent.
GCC countries, however, have not issued any statement on plans of raising tax rates. GAD/Expat Media
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