UAE should introduce VAT, tax on cars, says IMF
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.