Gulf States Mull Introducing VAT, Say Reports
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Weekender copy ‘TAX’Gulf states mull introducing VAT, say reports DT News Network Manama s reports Adissents among the Gulf ING! Cooperation Councilabout (GCC) the that discussions had stalled as countries on the introduction of country leaders had been unable value added tax (VAT) emerged, to agree on the terms and details financial consulting firm of such a tax, and because it’s Deloitte urged GCC nations to politically sensitive. introduce VAT yesterday. Nauman Ahmed, partner On Tuesday, and regional tax leader at quoted the Ministry of Finance Deloitte Middle East, said: of the United ArabReuters Emirates “Faced with a need to raise that “UAE is studying hada additional government proposal to impose VAT but its revenues, implementing a VAT introduction has been delayed would be a rational response by a lack of agreement among by government. That is not to neighbouring countries on rates say that the implementation of and exemptions.” corporate or personal income “If the GCC countries reach a tax can be ruled out; rather it final agreement on issues related is a reflection on the fact that a to the application of VAT, it VAT seems to “tick more of the will be announced directly,” the boxes” than the others.” Ministry said. But it did not He added: “Compared to elaborate on when agreement a VAT, a corporate income might be reached. tax is more likely to act as a The six oil exporting states disincentive to businesses of the GCC have been studying considering investment in the introduction of VAT for the region and hence more years. The plunge of oil prices negatively impact GDP growth. since last year has slashed A personal income tax presents governments’ income, making an obvious challenge to the ‘tax- free’ branding that has served asterdmhbahrain it more urgent for them to find new revenue. the region so well in the past.” However, Analysts believe that to limit damage to the competitiveness Reuters of economies, the tax would reported probably have to be introduced regionally. 2 Thursday, August 20, 2015 Spying: Estonian IS ‘mafias’ made officer jailed $11m per month #PollToday Russia sentenced an The IS made $11 mil- Are Bahrain Estonian intelligence lion per month from streets safe for officer to 15 years in jail, “organised crime” in drawing EU and US ire Iraq’s Nineveh province pedestrians after Tallinn said he was before seizing it and during kidnapped at gunpoint capital city Mosul nighttime? Israel suspends detention of Palestinian lawyer www.dt.bh Twitter : @DTribune Yes No Can’t Say Tel Aviv Doctors treating a Palestinian lawyer who has been on hun- ger strike for 65 days in an Israeli prison say he suffered brain damage, prompting Israel’s supreme court to rule UAE LAWYERS PANEL it was temporarily suspend- ing his detention.