World Economy

Paying VAT Would Help UAE Economy

Paying VAT Would Help  UAE EconomyPaying VAT Would Help  UAE Economy

The introduction of a value added tax is unlikely to deter expatriate residents and foreign investors from coming to live and work in the UAE, businesspeople in the country have said, NewsNow reported. The UAE Ministry of Finance confirmed this month that it has been conducting studies on the implementation of a VAT and corporate tax draft law, along with the other (P)GCC countries. The statement came following the International Monetary Fund’s update on the financial status of the UAE, which recommended additional taxation among several options for the government to further strengthen its revenue base in order to minimize dependence on the fluctuating global oil price. John Martin St. Valery, founding partner of The Links Group, believes “an efficient low tax environment is unlikely to see an exodus of expatriates”, or put off investors. “Both Singapore and Hong Kong are testament to this,” he said. “The UAE enjoys a similar geographical advantage as these markets, in terms of being a gateway to the fast-growth economies of the Middle East, the Indian sub-continent and Africa.”