According to The Ministry of Finance of the UAE, the government is not considering following the KSA's lead by raising the VAT from five per cent to a whooping 15 per cent like Saudi Arabia announced for July. Saudi Arabia is justifying this major move by current low oil prices and a strong reduction of export activities, caused mainly by the new coronavirus.
In a statement, it was revealed, "The Ministry of Finance has denied the existence of any immediate plans to raise value added tax (VAT) in the United Arab Emirates beyond its current rate of five per cent, and has reaffirmed its commitment to achieving the country’s goals and development plans."
Keeping VAT at the current level shall definitely help consumers in the UAE to regain confidence during these unprecedented times and help businesses recovering from COVID-19 crisis. In fact, some businesses are even going one step further and hoping to see the UAE authorities implement a six-month VAT holiday until situation resumes to a more buoyant state.
Photo: Supplied and Instagram @mofuae