The UAE Ministry of Finance (MoF) has denied any plans currently to raise the value added tax (VAT) in the country. VAT is currently levied at 5%.

 

The denial comes on the heels of Saudi Arabia announcing tripling of VAT from 5% to 15% starting July 1.

 

The ministry reaffirmed its commitment to achieve the county’s development goals and plans.

Younis Haji Al Khoori, Undersecretary of MoF, noted that the ministry’s current focus is to work with all government entities based on the guidance of the wise leadership to assess the priorities for the post-Covid-19 stage. Furthermore, the ministry will reorient the financial resources to prepare for the future and continued growth to ensure the security and safety of the communities.

 

He said: “We, at the Ministry of Finance, are studying our financial systems to ensure their readiness to manage the next stage and support all vital sectors. We are devising several programmes and projects to enhance our ability to continue the development process and to put people as our top priority. This is essential to build a secure future and achieve the well-being and stability of our society. The UAE has always been keen to take precautionary measures and launch financial initiatives, which protect the national economy and support various business sectors in the country.”

 

VAT was introduced in the UAE at the beginning of January 2018, which is a 5% indirect tax imposed on several goods and services. – TradeArabia News Service