Saturday 28 September 2013

Gulf Daily News » Business News » UAE planning tax on remittances abroad

Gulf Daily News » Business News » UAE planning tax on remittances abroad:

"The UAE is considering whether to impose a tax on the billions of dollars which foreign guest workers send back to their home countries every year, government and banking sources said yesterday.

It is unclear whether authorities will proceed with the tax, which would mark a major shift of policy, potentially raising costs in the economy and reducing the supply of foreign labour on which much of the UAE's boom is based.

But the proposal reflects growing concern in the UAE and other Gulf countries that they may be becoming too dependent on foreign workers and are losing too much of their wealth in the form of remittances abroad.

A circular discussing the proposal and requesting feedback was sent to some banks and financial institutions in the UAE, the sources said.

"It is a pilot project, in the initial stages. Based on the feedback from banks and others, a decision will be taken," said a Finance Ministry source."

'via Blog this'

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