Abu Dhabi – Mubasher: The UAE’s vehicles market is likely to see rising sales over the coming four months to avoid the introduction of the value-added tax (VAT), Al Khaleej newspaper cited Arabian Automobiles Company’s (AAC) CEO Michel Ayat as saying.
The VAT of 5% will be applied on vehicles in the UAE by the beginning of 2018.
Moreover, Ayat added that the beginning of 2018 will witness a drop in vehicle sales, including new or used vehicles, especially during the first months of the next year.
He noted that companies and car agencies will compete in offering alluring promotions to attract customers, according to Al Khaleej newspaper.
The UAE is forecast to collect between AED 10 billion and AED 12 billion ($2.7 billion and $3.2 billion) from applying the VAT on all products and services, except 100 essential goods, in the first year.
