VAT will reflect positively on economy: UAE official

Valued-added tax, VAT, to be introduced in the UAE in early 2018, will reflect positively on the economy and the government's financial stability, as the money levied will be used to launch new developmental projects, a senior official said today.

"The proposed five percent VAT will be applied to consumption and not on savings or investments. It will not have a significant impact on businesses and financial markets," said Rashid Al Blooshi, CEO of Abu Dhabi Securities Exchange, ADX.

He also announced that a panel discussion on the implications of introducing VAT for businesses in the UAE would be organised on Wednesday by ADX and the Canadian Business Council (CBC)-Abu Dhabi at Dusit Thani Hotel.

The panel, which also includes Al Blooshi, will address the impact of VAT on stock markets in the UAE and the mechanism of calculating the VAT, among other pertinent issues.

The discussion will be moderated by Omar A. Al Hashemi, Co-Chairman of the UAE-Canada Business Council.

The panel also includes a senior expert on taxation from PricewaterhouseCoopers (PwC), whose contribution was quite instrumental, two senior representatives from Abu Dhabi’s prominent law firm Hadef and partners who are going to address the legal and legislative framework for the VAT law in the UAE.

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