VAT UPDATE: Value Added Tax Will Have Little Impact On Residents
VAT will have minimal affect on residents, according to a post on Wam.ae this on Monday.
Value Added Tax was introduced for the first time ever in the UAEĀ on January 1 and saw a 5% tax added to most supplied goods and services.
The Ministry of Finance have stated the tax will have a positive effect for its development and competitiveness, it will contribute to aĀ sustainable knowledge-based economy for future generations, enable the improvement ofĀ services and continue to develop a future infrastructure to support the countries advancement.Ā
The tax will provide additional resources to the government
VAT will guarantee continuous growth and the introductionĀ was based on years of research by the Ministry to assess the future impact of applying the tax.
While tax has a negative perception, Younis Haji Al Khoori, theĀ Under-Secretary at the Ministry of Finance stated the UAE wanted to ensure an effective tax system taking into consideration the direction of the UAE while protectingĀ economic attractiveness and competitiveness.
VAT will also help decrease the UAE’sĀ reliance on oilĀ as a main source of revenue.
44% of residents are worried they won’t be able to afford to live in the UAE
A 2017 study fromĀ yallacompare based onĀ UAE residents’ attitudes towards the implementation of value-added tax (VAT) found.
64% believe VAT will have little or no impact on them, however 44% are worried they will not be able to afford the cost of living here in the UAE.
