Gulf states are yet to finalise their decisions to introduce value-added tax (VAT), but are expected to meet later this month to continue talks, according to Younes Al Khouri, undersecretary at the Ministry of Finance.
Speaking to reporters in Abu Dhabi on Sunday, Al Khouri said that meetings are still being held to decide on the industries that will be subjected to the tax.
“The committee has met many times, but we haven’t concluded anything yet. We’re still looking into whether the tax will be mandated on certain industries like health care and the food industry,” the undersecretary said.
He added that a tax rate between 3 and 5 per cent was proposed, but is yet to be approved.
GCC countries have been in talks to introduce VAT since 2007, with negotiations happening jointly to avoid any one nation losing out on competition with the others.
The tax is currently in the spotlight with oil prices fluctuating, and GCC governments said to be cutting costs. Officials at the International Monetary Fund have urged GCC countries to introduce VAT to ensure reliable inflow of government revenues.
