From the year 2018, six members of the Gulf Cooperation Council (GCC) are going to impose VAT on 5 percent (Value Added Tax) VAT.
Despite the administrative and technical barriers, the VAT will be implemented at the beginning of the new year. In the last two years, due to the decrease in fuel oil prices in the world market, there has been a major shortfall in the Gulf countries. GCC has implemented this new decision to tackle it.The GCC countries include Saudi Arabia, Kuwait, Qatar, Oman, Bahrain and United Arab Emirates (UAE).A senior economic official of the United Arab Emirates said that in this regard, six officials of the country have made policy decisions. Although like economists of some countries, VAT may not be possible in all countries at this time.The United Nations Under Secretary of the Ministry of Finance, Younes Al-Khuri, said the GCC governments want to implement it quickly. The government will impose 5 percent VAT on different sectors. However, some sections of the seven sectors will get special discount. These sectors are education, healthcare, renewable energy, water, space, transport and technology.
