The decision of the Saudi Arabia’s Finance Ministry to increase the Value Added Tax (VAT) from the existing five to 15 percent on May 11, has raised speculation about its adoption in other gulf nations, especially the United Arab Emirates (UAE).
The Ministry of Finance of the United Arab Emirates (UAE) has put a rest to such speculations by saying that it has no plans to raise the Value Added Tax (VAT) in the country.
The United Arab Emirates (UAE) has introduced the VAT in the year 2018, at five percent on several goods and services.
Younis Haji Al Khoori, the Finance Ministry Undersecretary said that the Ministry will reorient the financial resources, to prepare for the future and continued growth, to ensure the security and safety of the communities.
Apart from increasing the VAT, Saudi Arabia has also suspended the cost of living allowance to increase revenues, effective as of June, 2020.