Dubai – Mubasher: Returns of hotels are expected to decline after putting the value-added tax (VAT) into effect, according to a number of managers of hotels and hotel groups.
Competent authorities should reconsider the current imposed taxes in a bid to boost the sustainability of the sector’s growth, they added, according to Al-Ittihad newspaper.
Following VAT enforecement, hotels may face difficulties at the beginning in explaining the additional taxes and charges to their bills, public relation and media director of Dubai’s Gloria Hotel stated, as Al-Ittihad reported.
The VAT will be levied at 5% in the UAE as of the beginning of 2018.
