UAE should in­tro­duce VAT, tax on cars, says IMF

The Pak Banker - - FRONT PAGE -

DUBAI: The In­ter­na­tional Mon­e­tary Fund (IMF) has rec­om­mended the UAE im­ple­ment a spe­cial ex­cise on cars and broaden the cor­po­rate in­come tax, as well as push ahead with the planned tax on con­sumer goods, to help counter oil rev­enue losses.

The or­gan­i­sa­tion has told the coun­try's econ­o­mists the taxes could gen­er­ate an ad­di­tional 7.4 per­cent of non-hy­dro­car­bon do­mes­tic prod­uct, re­plac­ing some of the $42 bil­lion the UAE is ex­pected to loss from oil ex­port rev­enues this year, com­pared to 2014.

The IMF has rec­om­mended a 15 per­cent spe­cial ex­cise on cars and ex­tend­ing the ex­ist­ing 10 per­cent cor­po­rate in­come tax to more com­pa­nies.

UAE author­i­ties told the IMF dis­cus­sions were on­go­ing with other GCC states to in­tro­duce a co­or­di­nated VAT, but the timeline was un­clear.

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