Introduction of VAT in UAE and Gulf region ‘likely to hit economic growth’ | The National

Introduction of VAT in UAE and Gulf region ‘likely to hit economic growth’ | The National:

"Value added tax (VAT) will bring in around $6.5 billion to the UAE’s coffers, but will likely hit the Gulf’s economic growth, economists said.

Gulf ministers this week signalled agreement on a 5 per cent tax on consumption to be introduced across the region by 1 January 2019.

The UAE’s finances have been hit as the oil price, on which the government depends for more than 60 per cent of revenues, scrapes 12-year lows. That has led the government to cut public spending by more than 20 per cent – and look to new taxes – as it attempts to close a budget deficit expected to swell to double digits this year."



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