The UAE is expected to generate Dh10 billion to Dh12 billion revenue after possible introduction of Value-added Tax (VAT) in 2018, according to senior official of the Ministry of Finance.
Referring to a study conducted in 2014, Undersecretary at the UAE's Ministry of Finance Younis Haji Al Khoori, Undersecretary of the Ministry of Finance said VAT is likely to generate up to Dh12 billion revenue during its first year of implementation in 2018.
"The VAT would be introduced at the rate of between three per cent to five per cent of the goods value, but GCC countries are yet to finalise their implementation policy. It will not be applied on education, healthcare, social services and some food staples," Al Khoori said on the sidelines of a conference in Abu Dhabi.
Al Khoori said the UAE is committed to strengthen ties and joint financial work between Arab countries. He said experts from the IMF and World Bank shed light on ways to enhance job creation and reduce poverty.
Top financial officials from the Arab world discussed key economic issues in the Arab region at a meeting organised by the Arab Monetary Fund. Under-secretaries of finance ministries in the region participated in the meeting. The meeting was chaired by Dr Sulaiman bin Mohammed Al Turki, under-secretary of the Saudi Ministry of Finance for International Financial Affairs.
The undersecretaries' recommendations will be discussed at an April meeting of the Council of Arab Ministers of Finance in Bahrain. The officials discussed financial policy coordination between Arab countries, economic, regional and international challenges and future steps to support economic growth in Arab countries, as well as strengthen investment opportunities.
The International Monetary Fund presented papers on 'Economic diversification in Arab oil-exporting countries' and 'Investment and growth in Arab countries'. The World Bank presented papers on 'Enhancing flexibility of labour market for job creation in the Arab region' and 'Experiences in integrating the informal sector in the economy'.
Al Khoori said experts from the IMF and World Bank shed light on ways to enhance job creation and reduce poverty. The World Bank discussed the need for reforms and mechanisms to lower labour costs to reduce unemployment.
The working paper also suggested a number of mechanisms to support the reforms process, which included aligning labour regulations with international standards and reducing the gap between men and women's minimum wages.
The undersecretaries will resume their meeting on Thursday to cover topics, including the exchange of experience on tax policies and reforms in Arab countries, and the latest on preparations for the forthcoming Arab Fiscal Forum.
Undersecretaries will also discuss preparations for the forthcoming meeting of the Council of Arab Ministers of Finance in Bahrain.
By Haseeb Haider
Copyright © 2019 Khaleej Times. All Rights Reserved.