The government of Dubai has no plans to impose taxes on residents in the near future, the head of the emirate’s Department for Economic Development (DED) has said.
Addressing a meeting of the Hellenic Business Council in Dubai, DED director-general Sami Al Qamzi said that any move to add new taxes would be ‘difficult’ and would have to be considered at the federal level.
“For the government of Dubai in the near future, I am sure that they don’t have any taxation plans,” Al Qamzi said in response to an audience question.
“The only tax that I believe is applicable in Dubai is for foreign banks, but this law was since 1965, or something like that. There’s no other tax.”
Al Qamzi also said that, according to his information, he didn’t think that the federal government was considering any new taxes either.
The official added that all the services and fees that the government was imposing on businesses and individuals were being reinvested in local infrastructure.
“I know that certain issues, like the five percent municipality fees [the housing fee charged via DEWA bills] some people consider that as tax,” Al Qamzi said.
“But this is very important for us to keep enhancing not just the infrastructure but the services and the quality of life. To me, this place is the right place for you guys to invest, and drive investment…and for all of us here to enjoy the dividends of that investment.”
The DED director general said that Dubai’s real GDP growth would reach up to 1.5 percent in 2010, against the International Monetary Fund (IMF)’s projection of 0.5 percent growth.
In 2011, the DED is forecasting 3.5-4 percent growth for the emirate.
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