With the implementation of the new VAT, do we have a fair tax system?

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.