The Federal National Council.
PHOTO BY ARCHIVE
ABU DHABI – The Federal National Council on Tuesday (February 27) began an inquiry into cases of businesses misusing value added tax (VAT) to hike prices.
Minister of Economy, Sultan Bin Saeed Al Mansouri, said 164 tickets were issued to unscrupulous businesses that increased prices even though they were not registered in the tax system of the Federal Tax Authority.
Al Mansouri, who is also Chairman of the Supreme Committee for Consumer Protection, said that authorities received 1,981 complaints from customers over VAT misuse.
He said that 15 businesses were also shut down in January for grave violations.
Authorities carried out 13,370 inspections, Al Mansouri said at the start of investigation at the FNC.
Reports have reached authorities that some businesses have increased the prices of certain goods by 42 percent and building materials by 17 percent.
The UAE rolled out VAT of 5 percent on goods and services beginning on January 1.
Price increases need to be approved by the Supreme Committee for Consumer Protection before they can be implemented.
Al Mansouri said that a new draft law on consumer protection will soon be submitted to the Cabinet for approval.
Under the law, anyone who imposes additional fees on consumers without justification can be fined up to Dh10,000. GAD/Expat Media
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