The UAE government has affirmed the public that it has no plans to raise the country’s Value Added Tax (VAT) which is currently at 5%.
Earlier, Saudi Arabia has announced that it will increase its VAT to triple its initial amount, from 5% to 15% starting July 1, 2020, as the country aims to mitigate the effects of COVID-19 on its economy. In addition, the cost of living allowance will also be suspended beginning June 1.
An official announcement from the UAE’s Ministry of Finance (MoF) states that there are no immediate plans to do so and even stated that the country is committed to achieving its goals and development plans.
“#MOFUAE has denied the existence of any immediate plans to raise value added #tax (#VAT) in the United Arab Emirates beyond its current rate of 5%, and has reaffirmed its commitment to achieving the country’s goals and development plans,” tweeted the Ministry.
#MOFUAE has denied the existence of any immediate plans to raise value added #tax (#VAT) in the United Arab Emirates beyond its current rate of 5%, and has reaffirmed its commitment to achieving the country’s goals and development plans. pic.twitter.com/XK9rWmzy53
— Ministry of Finance (@MOFUAE) May 11, 2020
MoF Undersecretary H.E. Younis Haji Al Khoori stated that their ministry is currently studying the readiness of the country’s financial systems to find ways to manage and support vital sectors during and after the pandemic.
“We, at the Ministry of Finance, are studying our financial systems to ensure their readiness to manage the nex stage and support all vital sectors. We are devising programs and projects to enhance our ability to continue the development process and to put people as our top priority, building a secure future for generations to come,” said H.E. Al Khoori.
HE Younis Haji Al Khoori, Undersecretary of #MOFUAE, said the Ministry is currently working with all government entities according to the guidance of the rational leadership to review the priorities for the post-#COVID19 stage. pic.twitter.com/sSqxIgPPax
— Ministry of Finance (@MOFUAE) May 11, 2020
