UAE pledges to distribute 70% of VAT proceeds to help fund community projects

 The UAE plans to distribute 70 percent of VAT proceeds to local government to help fund community projects.

Sheikh Mohammed bin Rashid Al-Maktoum, UAE vice president, prime minister and ruler of Dubai, made the disclosure during the first cabinet session of 2018.

“We have decided to distribute value added tax revenues in the UAE so that local governments will receive 70 percent of these revenues to achieve better local services, greater community development, and wider support for our citizens,” he said.

The UAE and Saudi Arabia introduced value added tax (VAT) on Jan. 1, 2018. The 5 percent levy was applied to most goods and services. Saudi Arabia this week announced plans to issue a number of grants to citizens to help offset the impact of the new tax.

"The government will be transparent about the nature of these projects and firm in controlling the markets to prevent price hikes, and will continue to consult with citizens in order to serves their interests in the first place," he added.

Source: arabnews