UAE has no plans to increase VAT, says Ministry of Finance
The UAE has no plans for a value added tax (VAT)
rate hike, following the news that Saudi Arabia would be tripling its rate from
5 percent to 15 percent, the UAE Ministry of Finance told Al Arabiya on Monday.
The UAE's VAT rate currently stands at 5 percent and
was implemented at the beginning of 2018, although certain goods remain
tax-exempt.
Last month the country's tax authority said that it
would delay the due date for payment of VAT ending March 31 until May 28, as a
measure to support the economy amid the COVID-19 coronavirus pandemic.
Earlier on Monday, Saudi Arabia announced a variety
of economic measures that would be put in place to combat the economic fallout
of the coronavirus, including a VAT rate increase. The Kingdom will also cut
spending by 100 billion riyals ($26.6 billion), and postpone or cancel some projects,
including those associated with Vision 2030.
