Dubai – Mubasher: The value added tax (VAT) that will be implemented in the UAE in the beginning of 2018 will not impact negatively on the forecasted economic growth, Societe Generale Bank’s CEO in MENA region Richad Soundardjee said.
The VAT’s ratio that will be applied in the UAE will be less than the applied ratio in Europe that reached 20%, Albayan newspaper reported, citing Soundardjee as saying.
The bank’s outlook for the UAE’s economy in 2018 is “positive”.
The VAT applying in the UAE will not impact negatively on the bank’s activities in the country, the bank’s CEO in MENA region noted.
The UAE’s Federal Tax Authority (FTA) stated previously that it will start applying the VAT on 1 January 2018 by 5%.
The GCC nation forecasts to collect between AED 10-12 billion ($2.7-3.2 billion) in the first year of applying the VAT.
