Gulf ‘unlikely to introduce broad-based income taxes’: Moody’s | ZAWYA MENA Edition
The introduction of broad-based income taxes in the GCC is unlikely in the short-to-medium term, says Moody’s.
A new report by the US-based ratings agency states that direct taxation, which would significantly and durably lower the reliance of government revenue on oil and gas is a long way away as the region lacks economic diversification which means non-oil sector growth needs to be effectively subsidised.
The key difference between the GCC and most other sovereigns is an effective absence of direct taxes.
None of the GCC sovereigns currently levy property or personal income taxes, notes the report.
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