#Qatar Hesitates on VAT, Will Wait for ‘Right Time’ Before Imposing the Tax - Bloomberg

Qatar Hesitates on VAT, Will Wait for ‘Right Time’ Before Imposing the Tax - Bloomberg

Qatar, one of only two Arab economies in the Gulf region without value-added tax, will likely wait longer before imposing the levy.

“We will look to the right time to apply such taxes,” Finance Minister Ali Al Kuwari said in an interview Wednesday with Bloomberg Television at the Qatar Economic Forum in Doha. “Tax reforms are part of our plans.”

More than half a decade since signing an agreement with neighboring states that requires all six members of the Gulf Cooperation Council to introduce VAT, Qatar and Kuwait are alone in not following through. By contrast, Saudi Arabia already tripled its VAT rate to 15% in 2020 to bolster state revenue when oil prices slumped.

Last year, Al Kuwari said his country hasn’t yet chosen when to go ahead and was wary of adding an extra burden on consumers in the midst of the pandemic. A KPMG report earlier this year said Qatar was expected to impose a VAT regime at a rate of 5% during 2022.