UAE Cabinet approves distribution of VAT revenues of $7.4bn between the federal and local government
The UAE Cabinet has approved distribution of the value-added tax (VAT) revenues totalling about AED27 billion ($7.4 billion) between the federal and local government.
According to the decision, 30 percent of the revenue will go to the federal government and 70 percent to the local governments, state news agency WAM reported on Thursday.
It said the decision ensures the sustainability and the quality of government services and also contributes to the development of economic and social projects and public services.
VAT was introduced in the UAE on January 1, 2018 at a rate of 5 percent.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.