The UAE’s implementation of value-added tax (VAT) will enable the country’s government to build a sustainable knowledge-based economy and have a positive effect on its competitiveness, according to Under-Secretary of Finance Younis Haji Al Khoori.
In his remarks, Al Khoori noted that while VAT is linked to negative perceptions of living costs and the potential impact on business sector performance, the tax comes after over a decade of careful research and is being implemented in a manner that protects the UAE’s economic attractiveness and competitiveness.
VAT revenues, Al Khoori added, will allow the UAE to improve infrastructure, complete development projects, expand the job market and create jobs in new related sectors.
Additionally, the VAT revenue will help control operating expenses and develop the education and health sectors, as well as build parks, improve waste management and emergency response services, Al Khoori said.
The UAE’s rate of VAT is among the lowest in the world and its effect on individual residents will be minimal because it relies on the averages and patterns of their spending, Al Khoori added, noting that the VAT will help wean the UAE off its dependency on oil and other hydrocarbon products.For all the latest business 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.
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