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Remittance fees in UAE to slightly hike due to VAT rollout in January

With the imposition of 5% value added-tax (VAT) in the UAE starting January 1, 2018, Filipinos in the UAE should expect hike in remittance fee.

In a report by Khaleej Times, Rajiv Ashok Raipancholia, treasurer, Foreign Exchange & Remittance Group (FERG), said that, “We do hundreds of thousands of remittances, so 5 per cent VAT on the (remittances) charges will be passed on to the consumers.”

“Whether it’s 80 fils or Dh1, it’s going to be passed on,” he added.

The introduction of VAT charges on certain goods and services was first announced by UAE Minister of State for Financial Affairs, His Excellency Obaid Humaid Al Tayer back in February.

The implementation of 5% VAT is expected to provide a cushion against economic uncertainties, as well as fund government projects and initiatives such as infrastructure and healthcare.

This general appropriation tax was assured by the government to be one of the lowest in more than 160 countries.

One Comment

  1. The remittance app on Google Play will help you chooose the best remittance center.

    You can download the remittance app by searching “Remittance app” on google play or using the below link.

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