Saudi Arabia and UAE introduce 5% VAT in bid to narrow deficits

Saudi Arabia and UAE introduce 5% VAT in bid to narrow deficits:

"Saudi Arabia and the United Arab Emirates have imposed value added tax as the largest Gulf economies seek to boost non-oil income and narrow wide fiscal deficits caused by years of low oil prices. By introducing a 5 per cent tax on most goods and services on January 1, the two allies took a pivotal measure towards ending decades of tax-free living for residents and most businesses. Some sectors have avoided VAT, such as health, education and public transport. The UAE, home to two of the world’s largest airlines, has not imposed VAT on international aviation. "



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