VAT PLEDGE TO PROTECT RIGHTS OF CONSUMERS

Tax authority to take on profiteers Local services get 70% of revenue

Seventy per cent of all revenue collected from VAT will be pumped back into local services, Sheikh Mohammed bin Rashid said yesterday, as measures were announced to monitor prices and ensure consumer rights.

The Prime Minister and Ruler of Dubai chaired a Cabinet meeting in Abu Dhabi where he said most VAT revenue would be funnelled into emirate-level government projects to fund “better local services, greater community development and wider support for our citizens”.

Sheikh Mohammed said the Government would be transparent about the nature of the projects and firm in controlling the markets to prevent illegal price rises.

He said the Government would continue to consult with Emiratis “in all that serves their interests to achieve a decent living for them and their families”.

Yesterday, the Ministry of Economy and the Federal Tax Authority launched a programme to protect consumers’ rights and prevent profiteering.

The programme, which was adopted during a meeting at the ministry headquarters, allows the two to work with other authorities to detect tax offences and take measures against them. Awareness campaigns will be held to educate consumers about taxable and exempt products, and requirements for receipts issued by shops.

Markets will be monitored by inspectors who will verify the authenticity of the tax registration numbers printed on receipts.

“The efforts made by the Ministry of Economy towards protecting consumers are a crucial step in establishing systematic and accurate supervision of the market,” said Khalid Al Bustani, director general of the tax authority.

Sultan Al Mansouri, the Minister of Economy, previously estimated the new levy could generate up to Dh12 billion in revenue in its first year and Dh20bn in its second.

The tax authority said that VAT revenue would contribute towards public services ordinarily paid for from government budgets.

“VAT will provide our country with a new source of income that will contribute to the continued provision of high-quality public services into the future,” it said.

During the Cabinet meeting, Sheikh Mohammed spoke of further developments expected this year.

He said the UAE was preparing to be the first Arab country to achieve the “old Arab dream” of producing nuclear energy, with the Barakah plant in Abu Dhabi expected to begin operation this year.

The Cabinet also adopted the Water Security Strategy 2036, which aims to ensure water availability in sufficient quantities and quality in accordance with international standards, Wam reported.

The strategy includes measures for enhancing the water supply, including alternative sources, emergency production and distribution, storage and water networking across the country.

The Cabinet also adopted the Manual on Measuring Productivity in the Federal Government.

The manual will provide a “clear picture of the performance of officials in the government, be it positive or negative, to take immediate corrective action”, Sheikh Mohammed said.

In organisational affairs, the Cabinet approved the appointment of the board of directors for the Federal Authority for Nuclear Regulation. It also restructured the Judicial Co-ordination Council for all judiciary entities.

The Cabinet approved the estimated budget of the General Authority for Pensions and Social Insurance for this fiscal year, and a short-stay visa exemption in Switzerland for Emiratis.

It also agreed to upgrade the UAE’s diplomatic representation office in Bonn, Germany, to a general consulate.