By: Mahmoud Gamal
Dubai – Mubasher: The UAE government began to impose the value-added tax (VAT) on various goods, along with the stock trading’s commissions as of the beginning of January.
After approximately a month since the levy of the VAT, analysts stressed that the transactions in both Dubai and Abu Dhabi markets had not been affected by the new tax.
Trading’s commissions did not saw significant changes due to the VAT, as some companies did not change their prices ever since, said Mohab Maher, Mubasher’s senior sales trader.
In contrary to what was expected, the main impact on the UAE’s markets was not caused by the VAT, but rather by the geopolitical factors, Maher added.
The VAT was not levied at a high rate, therefore, investors did not feel a big change afterwards, Tariq Qaqish, managing director of asset management at MENACORP commented.
However, the listed companies’ disclosures in the first quarter of 2018 will be a true indicator of the new tax’s impact, Qaqish noted.
The VAT may also have a bright side, as the UAE’s government plans to re-inject its yields into the market through a wide range of investments, the analyst concluded.
Translated by: Muhammad Khalid
