05 October, 2006

Dubai is soaking VAT

VAT is the new crusher soon to come on the expat population of Dubai and UAE. Although I never considered Dubai tax free as the indirect-tax list is long and lengthy. Some people might disagree with some of the things categorized as tax by me but TAX is very much alive in UAE.

Now turning to VAT; VAT always favors the corporations and piles up wealth in government safes. Now lets see, inflation is killing, rents are hiking, fuel and grocery prices sky rocketing do the authorities see any money in expat workforces' pockets to be squeezed out.

Even if there is money my question is why the tax??? What will be subsidized for the expats. Residence Visa? Medical Care? Education (which is insanely expensive)? Housing ? Unemployment Safeguards? .. What exactly??? Not to mention what ills will come with VAT if it is not properly installed with a system of check and balances as pointed out by this GN article.

11 comments:

Seabee said...

Although in reality there are all the indirect taxes, we don't have the word 'tax' - the world still believes Dubai is a tax free paradise.

When VAT arrives, the word 'tax' is suddenly going to be alongside the word 'Dubai'. I wonder what effect that simple fact is going to have on Dubai's grand strategy for the future...

Keefieboy said...

I'm sure the authorities are aware of the phrase 'no taxation without representation'!

bizzwhizz said...

i hope keefie

Al Sinjab said...

That was my first thought Keefie. But those being taxed won't be represented and I doubt they will receive any new benefits.

How will the government reconcile this? Can it be reconciled?

Balushi said...

My Blog has Been Banned by Bloggers.com.


I dont know who did this But its one of you who did it!!!!!


WARNING
This blog has been locked by Blogger's spam-prevention robots. You will not be able to publish your posts, but you will be able to save them as drafts.

--------


And this email:


Blogger Notice: http://balushi402.blogspot.com

| | | Inbox


Dear Blogger user,

This is a message from the Blogger Team. In order to maintain a free, high
quality service, we use an automated classifier to identify spam blogs. [1]

This system has detected that your blog has characteristics that resemble spam.
Since you're an actual person reading this, your blog is probably not a spam
blog. Automated spam detection is inherently fuzzy, and we sincerly apologize
for this erroneous result.

You won't be able to publish posts to your blog until we review your site and
verify that it is not a spam blog. To request a review, please fill out the form
found here:

nzm said...

Although our local papers would suggest that it was the UAE's idea, it was at the recommendation of the IMF (International Monetary Fund) that the UAE and other Gulf States introduce VAT to reduce the dependence on oil funds. (While at the same time, levelling the playing field so that countries already charging tax could compete with the UAE!)

You can read more about it at:
Middle East Times
Khaleej Times
Property Frontiers - bottom of P5
Grapeshisha
Market New Zealand where they report that the IMF has recommended a 3-5% VAT - this report is quite an interesting read
Gulf Industry

anonymous lurker said...

level what playing field???? who is the uae competeing with???

the uae has has thrived at being a safe haven in a ocean of chaos. but bahrain and qatar are quite happy to be a safe harbor and not sell their souls to eastern europeans pimps and pakistani arms dealers. so the uae *now* has to compete and sadly what the other competitors have the uae threw away years ago.

Tim Newman said...

The additional revenues will serve only to make the fat lazy locals fatter and lazier, drive the non-fat lazy locals abroad, and further dissuade foreigners from coming to Dubai.

marwan said...

Who wants to be the locals will never be taxed? Why would they, they're already being subsidised by the government and let's face it - all of us.

The upshot of all this will more tanned dishdash fingers walking their way to their local Gargash and Al-Tayer dealerships.

bandicoot said...

I’m always wary of IMF recommendations, given their history, and this looks like yet another short-sighted proposal. I skimmed through the document and of course it’s typically pure economics; no mention whatsoever of any political or social concerns or other such issues; no forecast of how this will impact consumers. If you have time to kill, read the full original report here. The tables and graphs though look fancy!

dredge said...

VAT for Vendetta!

Post a Comment

NOTE: By making a post/comment on this blog you agree that you are solely responsible for its content and that you are up to date on the laws of the country you are posting from and that your post/comment abides by them.

To read the rules click here

If you would like to post content on this blog click here