We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 20 May 2007 12:00 AM

Font Size

- Aa +

Taxation closes in on the Gulf

The UAE is moving closer to the introduction of a value added tax (VAT), according to Mohsin Khan, Middle East and Central Asia director of the International Monetary Fund (IMF).

The UAE is moving closer to the introduction of a value added tax (VAT), according to Mohsin Khan, Middle East and Central Asia director of the International Monetary Fund (IMF). He said that most Gulf countries are considering some form of indirect taxation.

The Gulf states "are moving towards the introduction of VAT, however, the implementation of it will happen in phases,' he said. "Service driven economies such as Dubai and Qatar will be the first to implement VAT, with Dubai already having made significant progress."

Khan added that VAT made "economic sense" for Gulf countries that are diversifying into sectors including tourism, hospitality and financial services. "Taxation is certainly a politically sensitive subject in the Gulf. However, a sales tax is unlikely to attract as much opposition as an income tax," he added.

Arabian Business: why we're going behind a paywall

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.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.