UAE: 70 Percent of VAT Will Go to Local Governments

Published January 8th, 2018 - 07:31 GMT
VAT revenues will be used to achieve better local services, greater community development and broader support for UAE citizens. (Shutterstock)
VAT revenues will be used to achieve better local services, greater community development and broader support for UAE citizens. (Shutterstock)

Local governments will get 70 per cent of the revenues of the value added tax (VAT), implemented as of January 1, said Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on Sunday.

The remaining 30 per cent of the revenues will go to the federal budget. 

“Distribution of the VAT revenues aims to achieve better local services, greater community development and broader support for our citizens,” said Shaikh Mohammad while chairing a Cabinet meeting held at the Presidential Palace.

“Our goal is to create a bigger push for development projects and services provided to Emiratis. The government will be transparent on the nature of these projects and firm when it comes to controlling the markets to stop price hikes. The government will continue to consult with Emiratis in all matters that serve their interests and ensure a decent life for them,” Shaikh Mohammad added.

Shaikh Mohammad affirmed that “the achievements of the UAE today are the fruits of the vision of our father and the leader, the founder of the UAE”. He added that “President His Highness Shaikh Khalifa Bin Zayed Al Nahyan’s directives to dedicate this year to our founding father is an opportunity for us to translate the values that have been instilled in us into further achievements that serve our people and our country.”

The Cabinet approved appointing the board of directors for the Federal Authority for Nuclear Regulation (FANR).

“The UAE is preparing to become the first Arab country to achieve the Arab dream of generating energy through nuclear reactors, and this will be accomplished with the operation of the first nuclear reactor in 2018,” said Shaikh Mohammad.

The Cabinet also adopted the "Manual on Measuring Productivity in the Federal Government", which explains the mechanism of performance and productivity in the federal government. It includes directives for all ministries and government entities to understand and measure the productivity of the governmental sector.


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