{"id":33191,"date":"2016-02-25T20:37:14","date_gmt":"2016-02-25T19:37:14","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=33191"},"modified":"2016-02-26T04:26:24","modified_gmt":"2016-02-26T03:26:24","slug":"33191-2","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/33191-2\/","title":{"rendered":"VAT tax for GCC?"},"content":{"rendered":"

ChristineLagarde, Managing Director of the IMF, \u00a0says indirect taxation in the form of VAT in low single digits is the most viable option for GCC states:\u00a0Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.<\/p>\n

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GCC governments are limited in how they can raise revenues to support government services, making the implementation of a value-added tax necessary.<\/div>\n
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\u201cIt is time people are made to understand that public services need to be priced. Options are limited for governments.<\/p>\n

Either a viable pricing mechanism needs be implemented to fund public services or governments can resort to big borrowings which is not sustainable in the long term,\u201d said Lagarde.<\/p>\n

A\u00a0GCC-wide VAT tax is \u00a0scheduled to start in 2018.<\/p>\n

The region needs to adjust its fiscal affairs to the new reality of low oil price, but the introduction of taxation in a region that is used to subsidies and absence of any tax require lots of preparation.<\/p>\n

\u201cEven with a low tax rate of 5 per cent, with the introduction of VAT, it will not be difficult for GCC states to generate tax revenues up to 2 per cent to gross domestic product,\u201d said Lagarde.<\/p>\n

Compared to VAT, corporate income tax (CIT) is more likely to act as a disincentive to businesses considering investment in the region and more negatively impact GDP growth. A personal income tax presents an obvious challenge to the tax-free branding that has served the region so well in the past.<\/p>\n

\"VAT<\/a><\/p>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

ChristineLagarde, Managing Director of the IMF, \u00a0says indirect taxation in the form of VAT in low single digits is the most viable option for GCC states:\u00a0Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. GCC governments are limited … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-33191","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t