The Government of Dubai is not considering imposing any taxes on residents as that is an issue that is outside its ambit, a top financial officer of the emirate told a media gathering on Sunday.
“We’re not talking about taxes,” Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre and part of the three-member Dubai Supreme Fiscal Committee (DSFC), said. “The local government doesn’t have the authority to impose taxes,” he said, adding that that was a decision to be taken by the federal government.
However, Al Tayer noted that following a resolution by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, “there would be no additional fees levied on trade in order to encourage the activity.”
He said that that the 18 per cent growth in trade witnessed in the first eight months of 2010 was proof that this policy was reaping dividends for the Dubai economy.
According to Dubai Customs data shared during the Dubai Economic Update Media Forum, Dubai’s direct trade grew from Dh320 billion in 2009 to Dh377bn at the end of August 2010, with exports registering a phenomenal 39 per cent growth while re-exports surged 20 per cent.
Al Tayer also emphasised that the UAE’s trade with Iran was still ongoing as it is legal and in accordance with the United Nations Security Council resolutions. “Trade with Iran never stopped,” Al Tayer said while answering a query from a member of the media. “Iran is a very important trade partner of the UAE,” he said, adding that the UAE’s trade with Iran is legal.”
During the media Q&A session, Al Tayer reiterated his earlier remarks that Dubai did not need any more support from the UAE’s Central Bank.