The Gulf states are studying the option of implementing a 5% value-added tax (VAT) that, according to a senior UAE government, official, will replace the 5% customs duty currently charged on imports.
VAT is likely to be introduced across the GCC states by late 2007, pending policy frameworks and legislation, prescribed by the IMF which is advising the various customs authorities through the GCC Secretariat. Abdul Rahman Al Saleh, Dubai Customs executive director for Business Support and Services stated "Currently the country does not have a tax structure and we would like to start with a small tax structure base with limited number of items, leaving most others for gradual inclusion into the VAT structure."
