Undersecretary of the Ministry of Finance, Younis El-Khoury, affirmed that there is no intention to increase the value-added tax on the current rate of 5%.
He told «Emirates Today» that there is no change or amendment to what was announced previously, in the absence of future plans to raise the basic rate applied for value-added tax in the country.
The financial response was in response to Saudi Arabia raising the value-added ratio to 15% as of July 1st.
In a statement, Al-Khoury also affirmed the ministry’s commitment to achieving its approved development goals and plans, noting that the ministry’s focus is currently on working with all government agencies, according to the leadership’s directions, to review priorities for the post “Covid-19” stage, and redirect financial resources to prepare for the future, And to continue to grow, and to ensure the security and safety of society and individuals.
He continued: «We are working in the Ministry of Finance to study our financial system, and enhance its readiness to manage the next stage, to support all vital sectors, through the development of innovative programs and projects that enhance our ability to continue the development process, and put people at the top of their priorities, to build a secure future for future generations, and achieve well-being And stability for our society. ”
He stressed that the UAE has been keen to implement precautionary measures and launch a package of financial and economic initiatives, which work in its entirety to protect the national economy and enable business sectors to enhance financial stability and sustainability in the country.
It is noteworthy that the UAE and Saudi Arabia have applied VAT since the beginning of January 2018, which is an indirect tax of 5% imposed on most goods and services that are supplied at every stage of the supply chain.
And the Federal Tax Authority issued, last April, a decision to specify an alternative date for the maximum delivery of tax returns, and to pay the tax due for the tax periods ended March 31, 2020, to May 28, 2020, in light of the coincidence of filing dates with the procedures for restricting movement due to «Covid19» .