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Tue 22 Nov 2016 11:55 AM

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UAE to use VAT revenue on new development projects, says Al Blooshi

Rashid Al Bloosh, Abu Dhabi Securities Exchange CEO, said it will not have a significant impact on businesses and financial markets

UAE to use VAT revenue on new development projects, says Al Blooshi

The UAE will use the money generated from value-added tax (VAT) to launch new developments projects, Abu Dhabi Securities Exchange chief executive officer has said.

The five percent consumer tax will be introduced in the UAE in early 2018 and will reflect positively on the economy and the government's financial stability.

“The proposed five percent VAT will be applied to consumption and not on savings or investments. It will not have a significant impact on businesses and financial markets," Emirates News Agency (WAM) quoted Rashid Al Blooshi as saying, without giving details on the development plans.

On Monday, Danny Sebright, president, Washington-based US-UAE Business Council said VAT will not have a significant impact on US trade, as the bilateral trade reached $26 billion in 2015.

A panel discussion on the implications of introducing VAT for businesses in the UAE will be organised by ADX and the Canadian Business Council-Abu Dhabi at Dusit Thani Hotel on November 23.

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