The UAE has implemented the new VAT system this
year on almost all products including oil prices to foreigners, who buy it. It
brought an impact on certain businesses and the economy. However, it will also
help government move towards its vision of reducing dependence on non-renewable
things as a source of revenue. Taxation effects anything we buy and gives an
advantage to support the country in earning money, but what do you think? I
think taxes are beneficial to support funding the community.
A lot of people think about the VAT if whether
either its good or bad to spend extra money for the community. This has been applied in stores and markets for
groceries, electronics and products we buy every day. However, GCC ( Gulf Cooperation Council) has agreed
to exempt some of the products and that is a great thing for us, especially
people who worry too much about money. We buy many things every time, some might say
paying extra wastes a lot of money, but five percent of any price isn’t too
much. If car cost 100,000 AED, the extra amount would be 5000 AED.The tax system is something that helps the
community, the government earn funds by taxing to keep education, public
services such as the police force, firefighters, hospitals and construction
projects. If the tax system wasn’t used, the government wouldn’t be able to
keep up all these services; kids wouldn’t be able learn, nowhere to heal sick people,
no safety or authorities to protect us.
The UAE will remain tax-free in many ways even after the
implementation of VAT as there is no income tax
on salaries in the country. Free zones in
the country also offer tax-free environment including 100 percent foreign
ownership in free zones, which doing business easily. Businesses can choose to be registered or not,
but they must keep their financial records in case the ministry needs its.
This
is crucial step for the UAE’s future and to keep economy stable. The new law
seems great and fair for everyone, so there is nothing too much to worry about.
