Corporate tax reduction vital

The new British government should seriously consider reducing corporate tax and stamp duty in order to keep the Britain’s competitive edge as a real estate magnate, said a top businessmen.

Speaking at the Arab News business dialogue, Basil Al- Ghalayini, CEO, BMG Financial Group, also said: “I do believe that the outcome of Brexit referendum is not good for the UK economy, at least in the medium term.

“This is the kind of distraction to the economy that the government can live without during these challenging times.

“Especially, only 52 percent voted for it, which means the remaining 48 percent are keen to stay in the EU.

“Furthermore, a high percentage of Brexitiers are of the older population while the young ones have to live with consequences for years to come. In spite of the fast tracked newly appointed Cabinet, there is still certain degree of uncertainties on the state of economy for the remaining of 2016. Having Boris Johnson to lead the exit negotiations with EU members will be a challenging task,” said Al- Ghalayini.

He added: “In spite of all the negative impact of the Brexit outcome, the UK will continue to have its attraction as a financial and business center, in London, coupled with its rich cultural and educational features.”

Al- Ghalayini said: “To many of us, London is still the most sought after international city outside our respective home towns.

“With the weaker pound for now, the tourism, health care, education and residential real estate sectors will witness immediate boost. Having said that, the new government should seriously consider reducing corporate tax and stamp duty in order to keep the UK’s competitive edge as a real estate magnate.”