Dubai government has announced that it will start levying an innovation fee, the proceeds of which will be directed to Dubai Future Foundation.
The Vice President, Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, has issued Law No. 01 of 2018 on the Knowledge Dirham Fee, and Law No. 02 of 2018 about the Innovation Dirham Fee.
According to a report by WAM, Dubai government entities will charge Knowledge Dirham Fee and Innovation Dirham Fee of AED10 each for all transactions valued above AED 50.
The Knowledge Dirham and Innovation Dirham will not be refunded when transactions are cancelled.
The Knowledge Dirham Fee will be levied on all transactions for government services in Dubai including federal government services whose revenues are allocated to the Public Treasury of the Government of Dubai.
The Law aims to engage the community in supporting educational and cultural projects in Dubai, as well as create simple and clear procedures for the collection of the Knowledge Dirham Fee.
The Law annuls Law No. 04 of 2005 on levying the Knowledge Dirham Fee and its amendments and executive order. The Law also annuls any other legislation that contradicts it.
Meanwhile, the Innovation Dirham Fee aims to support innovation-related projects. The revenues generated from the Fee will be allocated to the Dubai Future Foundation, DFF.
In accordance with this Law, the Chairman of DFF’s Board of Trustees will set up the ‘Innovation Dirham Investment Committee’ to explore opportunities for investing revenues from the Innovation Dirham, and identifying innovative projects for support.
The Chairman of the DFF’s Board of Trustees will issue the necessary resolutions to implement the Law.
The Law annuls Law No. 20 of 2015 on the Innovation Dirham Fee and its executive regulations and any other legislation that contradicts it.
Both Laws will be effective from the date of its publication in the official gazette.