Latest News
- Court Sentences Bank Employee To 5 Years For Embezzling 100,000...
- Fake ‘Sheikh’ Sentenced To 2-yr As Court Overturns Verdict
- Justice Ministry New Service On The Sahel App
- Ministry Probes 68 Cases Of Illegal Charity, Funds Collection
- Globally, Kuwait Is Among The Top Consumers Of Incense And Oud O...
- Decrease Seen In Foreign Investment
- Kuwait Customs Seized 2 Containers Laden With Tobacco At Shuwaik...
- Unpaid Salaries, Accountant Beaten Up By Workers
- The Sahel App Was Not Hacked, A Spokesman Claims
- Four Expats Arrested For Stealing Copper Cables Worth 60,000 Din...
- Indian National Died In Abdalli Car Accident
- Work Permits And Foreign Worker Transfers Are Amended By PAM
Uae Will Be Affected By Introduction Of Vat Says Bmi
The introduction of the value-added tax (VAT) by the GCC from January 1, 2018, will only have a short-term impact on the spending power of locals and expats, according to a new report.
The five percent general consumption tax, BMI Research said, will be the largest measure to impact spending power of GCC citizens.
“Companies typically pass these costs down to consumers, which means we expect to see a five percent increase in prices for the majority of goods and services in 2018. We, therefore, believe this will lead to a short-term negative impact on consumer spending, as households adjust to the new price reality,” the Fitch Ratings subsidiary said.
However, it projected consumer spending levels to remain stable driven by relative wealth of households and low inflation ensuring purchasing power is not eroded significantly.
“Even expats will weather the storm due to exemptions on many basic goods including food and healthcare,” BMI said.
The UAE is expected to exempt more than 100 essential commodities from the tax list.
According to the consultancy, though the common framework was agreed upon in May 2016, there is a possibility that the each domestic VAT law will differ slightly at the country level.
“This means the amount of revenue raised, details on product exemptions and the costs to growth will vary across the GCC. Our Country Risk team expects the UAE will be the most affected by the introduction of VAT given its larger consumer base, as the country will raise 2.1 percent of GDP from the tax, compared to 1.1 percent in Qatar and 2.0 percent in Kuwait,” it added.
SOURCE : ARABIANBUSINESS
Trending News
-
Eid Al Fitr 2024: Crescent Moon Not Sighted In Sau...
08 April 2024
-
Kuwait Implements Home Biometrics Services Ahead O...
14 April 2024
-
When Will Eid Al Fitr 2024 Take Place In Qatar, Ba...
08 April 2024
-
On Sunday, The Meteorological Department Warns Of...
07 April 2024
-
Kuwait Airways Provides Update On Flight Schedule...
14 April 2024
-
Kuwait Airways Introduces Convenient Home Luggage...
15 April 2024
-
Gathering For Eid Al-Fitr Prayers: Kuwaiti Citizen...
10 April 2024
-
Winners Of Kuwait National Assembly 2024 Elections
06 April 2024
-
Bay Zero Water Park Kuwait: Summer Season Opens Ei...
11 April 2024
-
An Egyptian Expat Dies At Kuwait's Airport
11 April 2024
Comments Post Comment