The UAE introduced Value Added Tax (VAT), a broad-based indirect tax levied on the consumption of goods, from January 1, 2018 at a standard rate of 5%. In this interview, Dr. Nasser Saidi touches upon revenue and economic diversification, and VAT’s impact on inflation, businesses. He also compares VAT rates across the globe, while also discussing fines for non-payment of VAT.
The interview (in Arabic), telecast on 1 Jan 2018, can be viewed here.
The UAE VAT rate of 5 percent is among the lowest in the world. In Egypt, it is 14%; in Lebanon it’s 11%. The UAE government is projected to collect AED 12 billion ($3.27 billion) in 2018 from the new tax and AED 20 billion ($5.45 billion) in 2019, rising to 1.5% of gross domestic product over next three years. More comments also appeared on Xinhua.
