Picture for illustration purposes only.
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
Will UAE raise VAT rate, introduce income tax? What official says
27 companies fined in Abu Dhabi over VAT abuse
Post-VAT, prices to be rounded up to 25 fils in Abu Dhabi
Help Emirates Park Zoo & Resort name newest resident
Omani cleared of Filipina’s sexual abuse case in Dubai
Ajman to reward gold points to good motorists
14 worms removed from woman’s eye
World’s best island Boracay could be ‘permanently closed’
22 found hiding in concrete mixing truck while trying to enter UAE illegally
India emerges as serious contender in new global ‘space race’
Future of food: What’s on your dining table in 2118
Mars allure: Making humans an inter-planetary species
Sharjah apartment fire investigation continues, 6 recovering in hospital