UAE’s Ministry of Finance Undersecretary Younis Haji Al Khoori has highlighted that the implementation of value-added tax (VAT) will enable the nation’s government to build a sustainable knowledge-based economy and as well as impacting its competitiveness.
He added that the negative perceptions about the new tax law is linked to misinformed notions about high costs of living and the potential impact on business sector performance.
Al Khoori underlined that the tax comes after over a decade of careful research and is being implemented in a manner that protects the UAE’s economic attractiveness and competitiveness.
The Finance Undersecretary further explained that revenues from VAT will enable the UAE to improve infrastructure that will support the country’s steady advancement in international competitiveness indicators. Furthermore, it will also help to complete development projects, expand the job market and create jobs in various sectors.
Al Khoori affirmed that the new VAT rate is among the lowest internationally and its effects on individuals will be minimal. He also noted that it will help wean the UAE off its dependency on oil and other hydrocarbon products.