The UAE would introduce taxes at some stage “if it suits the government and the people”, the minister of economy has said.
However, Sultan Bin Saeed Al Mansouri told the World Economic Forum (WEF) summit in Abu Dhabi this week that any decision would be thoroughly evaluated by the government first.
Gulf News quoted Al Mansouri as saying: “Any decision on any issue, there is a process in the government. We will discuss it, evaluate it how it effects our competitiveness.
“We are part of the GCC and there should be a common policy. So, in future, if this serves the government and the people it could open to taxes just as other nations have.”
Al Mansouri did not provide details of what sort of taxes may be imposed, according to the newspaper.
But the UAE has been working with other GCC countries for some years now on plans for a value added tax (VAT).
It has also mooted corporation tax, tax on remittances and some others, to compensate for continued low oil prices which have hit revenues.
Al Mansouri said the ministry has completed several feasibility studies on the impact of taxation in the UAE – the last of which was reportedly completed early this year.
“The studies will determine the impact of taxes on the growth of the regional economy and UAE’s global competitiveness,” he said.
However, with regard VAT, an agreement has yet to be reached between GCC countries on the rate of taxation and possible exemptions.
Discussions are understood to be continuing.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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