Saudi Arabia and UAE introduce VAT
Posted: Mon 01 Jan 2018, 03:43:28
Low oil prices are forcing a tax rethink
But they still have it good (0% income tax)
Generally, in the face if the impeding changes that Peak Oil will force on us, if the new VAT tax could reduce consumption then it would be a good move apart from diversifying from just one income stream for government moneys
BBC wrote:Value Added Tax (VAT) has been introduced in Saudi Arabia and the United Arab Emirates for the first time.
The 5% levy is being applied to the majority of goods and services.
Gulf states have long attracted foreign workers with the promise of tax-free living.
But governments want to increase revenue in the face of lower oil prices.
The tax kicked in on 1 January in both countries.
But they still have it good (0% income tax)
http://www.bbc.com/news/business-42508883In Saudi Arabia more than 90% of budget revenues come from the oil industry while in the UAE it is roughly 80%.
Both countries have already taken steps to boost government coffers.
In Saudi Arabia this included a tax on tobacco and soft drinks as well as a cut in some subsidies offered to locals. In the UAE road tolls have been hiked and a tourism tax introduced.
But there are no plans to introduce income tax, where most residents pay 0% tax on their earnings.
Generally, in the face if the impeding changes that Peak Oil will force on us, if the new VAT tax could reduce consumption then it would be a good move apart from diversifying from just one income stream for government moneys