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There are a lot of rumours going around that Dubai and quite possibly the UAE are to introduce a VAT in the early part of next year-possibly as early as Jan 1. Anyone else hear anything about this...

The esitmates range anywhere from 8-15 percent. I dont see how they can only introduce this in Dubai because people would simply go shop in the other emirates but who knows how they think?

The customs people already charge a tax for goods coming into the country. What they want to do is cancel this customs tax and introduce VAT at the point of sale, to satisfy some nonsense WTO criteria. Theoretically, prices of goods will therefore NOT go up, but since this is Dubai, we all know what will happen.

gtmash wrote:The customs people already charge a tax for goods coming into the country. What they want to do is cancel this customs tax and introduce VAT at the point of sale, to satisfy some nonsense WTO criteria. Theoretically, prices of goods will therefore NOT go up, but since this is Dubai, we all know what will happen.

Yeah...right. 5% import duty AND 8% VAT. March 2008 I hear.



Knight

Anything else to give inflation a nudge is going to tip this place over the edge that it is already teetering on.

^ian^ wrote:Anything else to give inflation a nudge is going to tip this place over the edge that it is already teetering on.

I have talked to quite a few people who are ready to run for the airport now, dunno what happens after imposition of VAT.

Dubaidude007 wrote:

^ian^ wrote:Anything else to give inflation a nudge is going to tip this place over the edge that it is already teetering on.

I have talked to quite a few people who are ready to run for the airport now, dunno what happens after imposition of VAT.

The thing is though, setting up a VAT doesn't happen overnight, as business needs time to prepare, including adjusting their software and their accounting systems.

I can remember when GST was introduced into Australia it took at least 12 months for business to gear up and get everything right. Expect some decent advance notice if they're to introduce a VAT, at least a functional one.

^ian^ wrote:

Dubaidude007 wrote:

^ian^ wrote:Anything else to give inflation a nudge is going to tip this place over the edge that it is already teetering on.

I have talked to quite a few people who are ready to run for the airport now, dunno what happens after imposition of VAT.

The thing is though, setting up a VAT doesn't happen overnight, as business needs time to prepare, including adjusting their software and their accounting systems.

I can remember when GST was introduced into Australia it took at least 12 months for business to gear up and get everything right. Expect some decent advance notice if they're to introduce a VAT, at least a functional one.

You and I may know this; but I assure you that this thought has not occoured to the people who make these decisions.

Compare the prices of Ciggies at DXB Duty Free and Carrefour.

I think you will find us smokers already pay somewhere near 20% tax.

They are copying the Brits, thats how we do it. Here is a good example of stealth tax.

Return Flight to Heathrow to DXB £280. Cost breakdown thus:

Actual cost of flight £160

Departure Fee/Environmental Levy £120. Soooooooooooo

Government gets £120 for doing sod all

Airline gets £160 less its operating/staff costs.

It would be impossible to introduce VAT while inflation is running at 15%. They want to do it but while the USD remains weak and the peg is in place it is impossible. And it can't be done over night (as has been pointed out) it needs a period to be introduced

I heard the other day that the dollar is about to crash...I hope it has fully comp insurance!



Knight

i think it maybe to do with the fact that the bank of england announced a .5% drop in our interest rate in january just 2 days ago, this is the first time this has ever happend (a pre announcement) and i think the Yanks are shitting themselves if this does happen.