Dubai Duty Free is hoping products sold at Dubai airports will remain exempted from value-added tax (VAT), according to report in sister-publication Arabian Business.
The report goes on to add that the UAE is looking to introduce 5% VAT from January 2018.
“It is our view that VAT will not be applicable on products sold airside at Dubai’s airports as they are being sold to passengers leaving the emirate,” Bernard Creed, senior vice president, finance, Dubai Duty Free, told Arabian Business.
Along with the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain will adopt the new tax which will act as a way to increase non-oil revenues during a time of economic slowdown due to low oil prices, Arabian Business reported citing Reuters and Zawya.
In the first year, the UAE is expected to generate US $3 billion (AED12 billion) from tax revenue, Gulf News reported. It would be the first time the region has introduced direct taxation, in an attempt to boost regional coffers following a sharp drop in the oil price.
Read the full story here.
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