VAT plan 'would conflict with existing laws'

VAT FEARS: Memo suggests VAT plan would conflict with existing law. (Getty Images)

The introduction of valued added tax on products imported from other GCC states could conflict with pre-existing customs agreements signed with other Gulf Arab states.

The UAE Minister of Economy, Sultan bin Saeed Al-Mansouri, sent a memo to the Minister of State for Financial and Industrial Affairs, Obaid Humaid Al-Tayer, to raise concerns over plans to introduce the new tax, Emirates Business 24/7 reported on Sunday.

Dubai Customs has announced that the federal government intends to replace the current custom tariffs with VAT.

Al-Mansouri said that VAT would also contradict Federal Industrial Law No.1 of 1979, which exempts locally-manufactured products from taxes, the newspaper said, citing officials.

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