GCC states in agreement on 5% VAT

Decision yet to receive final approval, Omani minister says

Published: 18:52 February 22, 2016 Gulf News
Gulf News
Abu Dhabi: GCC countries have agreed they will introduce Value Added Tax (VAT) a
t a rate of five per cent in 2018, though the decision is yet to receive final a
pproval before being implemented, according to a top Omani official.
Darwish Al Beloushi, Oman s Minister of Financial Affairs, told reporters on Monda
y that GCC countries have already reached a decision on the five per cent rate a
fter negotiating on a rate between three and five per cent.
A spokesman from the UAE s Ministry of Finance had earlier said GCC countries are
yet to finalise their implementation policy, but they have agreed that the tax w
ill not be applied on certain industries like education, and health care.
Staple food items would also be exempted from VAT.
The tentative policy for the tax implementation has already been approved by lea
ders of the GCC countries, Younis Al Khouri, undersecretary at the UAE s Ministry
of Finance had said earlier.
He pointed that the UAE is expected to generate around Dh10 billion to Dh12 bill
ion as a result of introducing VAT in the first year of implementation alone.