The UAE is set to introduce five per cent VAT on a host of services and goods from January 2018 as part of the Gulf Cooperation Council agreement. Along with the UAE, Saudi Arabia will also impose VAT from next year while other Gulf states will implement it at a later stage.
Addressing the Dubai Diamond Conference, Dubai Multi Commodities Centre’s (DMCC) executive chairman Ahmed bin Sulayem urged authorities to be cautious in order to avoid shifting of businesses from the UAE as a direct fallout of VAT.
“With a total of $26 billion in 2016, the UAE has gone through a meteoric rise to eminence after starting with a mere $300 million in 2002 when DMCC was established.This story should continue in the next decade and all the odds are in favour of further growth. However, the announcement of a possible introduction of VAT on loose diamonds would strongly jeopardise this,” Peter Meeus, chairman of Dubai Diamond Exchange said.
Source Credit: Khaleej Times
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