It grew by 64.6% during the second quarter of 2021

Tax revenue is back to pre-pandemic levels

Tax revenues recorded 46.9 billion dirhams during the second quarter.

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The latest data issued by the Ministry of Finance revealed that the collected taxes, whether imposed on oil companies, or derived from the value-added and selective taxes, grew by 64.6% during the second quarter of this year, reaching 46.9 billion dirhams, compared to 28.5 billion dirhams for the period. The same as last year, which witnessed the peak of the spread of the “Corona” virus.

Monitoring and comparing the data of the Ministry of Finance indicated that tax revenues in the second quarter of 2021 almost returned to pre-pandemic levels, registering the highest toll in a year.

The tax item in the consolidated budget of the UAE, which includes the federal budget, in addition to the local budgets of the Emirates, accounted for 39.3% of the total revenues of 119.3 billion dirhams.

The tax agent, Mohamed Helmy, told "Emirates Today", that the "Corona" pandemic has changed many of the shape of companies that operate in important sectors of the economy, such as the retail sector, restaurants, trade and others, which have almost turned to digitization, relying on marketing and electronic sales.

And he indicated that there are companies that have exited the market as a result of the negative repercussions of the pandemic, and as a result of their work traditionally did not keep pace with developments, but on the other hand, there are companies that were established, and others whose business flourished, as a result of the new market requirements, and remote work, which created a great balance in the local market.

Helmy added that the reopening of activities and the movement of trade, and the flexibility of switching between the system of remote work or inside offices, gave a great impetus to the market, and contributed to the return of sales and income to levels approaching what it was before “Corona”, and even surpassing it in some sectors, especially delivery services. and e-shopping.

He pointed out that the high tax revenue reflects an increase in commercial traffic in general, and indicates an increase in companies' income and sales, expecting that the coming period will witness a further rise in this item, especially after the opening of the "Expo 2020 Dubai" exhibition and what we are witnessing currently in great popularity in different sectors, and the desire of business owners to compensate for the closure period.

Mohamed Helmy:

• «The high tax proceeds reflect an increase in commercial activity and indicate an increase in the income and sales of companies».

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