VAT implemented in UAE and Saudi Arabia, Qatar unlikely to follow suit soon
The Value added Tax (VAT), which is expected to be introduced throughout the GCC by the end of this year, is unlikely to be implemented in Qatar in the short term, according to Qatar Tribune, who spoke to several businessmen and industry experts.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE had earlier signed an agreement, thus paving the way for VAT’s introduction throughout the GCC in 2018.
The next steps call for implementation of local laws to be agreed upon in each country.
“The implementation of VAT in Qatar depends on several factors like the fiscal policy, revenue streams and commodity prices. The recent budget announced by Qatar is quite comprehensive, and my opinion is that VAT might be deferred here to assess how it works out in countries of the region where it’ll be implemented soon,” Doha Bank Chief Executive Officer R Seetharaman told Qatar Tribune.
According to Seetharaman, the business environment in Qatar is very attractive and the country would like to maintain it further.
Meanwhile, Saudi Arabia and the UAE have implemented VAT system starting today, reported BBC.
The 5% levy is being applied to the majority of goods and services. The UAE estimates that in the first year, VAT income will be around 12b dirhams.
Petrol and diesel, food, clothes, utility bills and hotel rooms will all now have VAT applied.
But some sectors, like medical treatment, financial services and public transport, have been exempted from the tax.
Prominent Qatari investor Yousif Mousa Abuhelaiqa said, “After the initial shock of the unjust blockade imposed on Qatar by the Saudi-led bloc, businesses in the country are doing well and therefore it would be better if we put off the implementation of VAT for at least six months or a year.”
Abuhelaiqa said it would be better to wait and watch how the VAT system works in the neighbouring countries rather than rushing to implement it here.
The Qatari businessman said the country has good sources of revenues and for this reason VAT may not be an urgency in the immediate future.
The VAT is launched in UAE on 1 Jan 2018. after launching the VAT more item and service are under the VAT.
https://www.thevatuae.com/
VAT is a good system to generate revenue for government in developing the country further, with regards to Qatar, implementation of VAT will affect those who gets low wages adversely. Along with the implementation of VAT, government have to introduce a scheme for increasing wages of workers who gets lower wages below a threshold by fixing a threshold. People who gets lower wages under a certain threshold are huge in numbers compared to those who gets more than the threshold amount. in my opinion, it is much better to increase/implement the corporate income tax, property tax, tobacco tax, Import & Export tax, professional tax for high income earning individuals, Dividend distribution tax, Entertainment Tax, Wealth Tax and etc.
VAT is inevitable and will come to Qatar eventually.
It can add at least a few billion dollars to the kitty in a financial year.
i totally agree with mr.prasad.
The actual plan was implement here too starting from today, due to this blockade they didnt. Any how petrol and diesal price is gonna increased.
with all the respect to the nation and its laws its a humble request that not to implement VAT here as it will be more pressure on the lifestyle of expats as the population of expats very high in Qatar.
Already Qatar is facing a VAT like situation in commodity and consumer goods. It is a wise decision by the Government not to load the citizens with additional VAT.
VAT is a income generating measure for a Government and the situation is not right for Qatar at present. In my opinion, we may see after WC. The matter of fact is that Qatar is one of the richest countries in the world at present and may not require income from taxes.