By: Rami Samih
Abu Dhabi – Mubasher: The implementation of value added tax (VAT) will not affect the UAE’s capital markets, according to the Abu Dhabi Securities Exchange’s (ADX) CEO, Rashed Al Baloushi.
On the sidelines of a panel discussion on the effects VAT, Al Baloushi said that it will help in generating revenues worth AED 12 billion to be pumped into infrastructure projects, with a contribution by public and private shareholding companies.
The six members of the Gulf Cooperation Council (GCC) are set to implement the first-of-its-kind VAT as of 2018, in a time government budgets suffers a huge deficit from lower oil prices.
“VAT is planned to be imposed on consumption only, and will not be imposed on either savings or investments,” Al Baloushi said.
“The 5% VAT to be applied is very low compared to VAT rates ranging from 15% to 25% in most of countries around the world,” he added.
Al Baloushi asserted that the VAT will help in energising the country’s economy, boosting investment and securing the stability of financial situation.
Translated by: Elwy el-Manzalawy
