With a fragile economic recovery underway in the country, the International Monetary Fund (IMF) has suggested that the emirate of Dubai consolidate its debt ratios, which it believes will be aided by the introduction of GCC-wide value-added tax (VAT).
“Dubai should undertake fiscal consolidation to achieve a comfortable debt-to-GDP ratio over the medium-term. The planned introduction of a GCC-wide VAT would enhance revenue mobilisation capabilities and facilitate such consolidation,” the IMF said in a mission statement on the UAE’s economy today.
After a 3.2 per cent decline in 2009, the UAE’s economy returned to growth in 2010, with the momentum carrying into 2011, the IMF said, while cautioning that several factors, including the unrest in the Middle East and North Africa (MENA) region continue to pose downside risks to the country’s growth prospects.
Dubai's Economy is improving in 2011 following 2010, from a declined period. And people just started to establish, while still a lot of suffering from pay freeze and much more financial problem there. And this is not the right time to impose tax. As Arab is already in much crisis, so better is to avoid implementing any thing that people dislike.
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