UAE to discuss tax procedure laws this week

Abu Dhabi - Earlier this year, the UAE announced a value added tax (VAT) rate of five per cent from January 1 2018.

The Federal National Council (FNC) will hold the ninth and 10th meetings of the Second Ordinary Session of the 16th Legislative Chapter on Tuesday and Wednesday, during which members will discuss the federal draft law on taxation procedures.
The UAE had earlier announced a value added tax (VAT) rate of five per cent from January 1 2018, but the introduction of other alternate revenue measures including corporate and income taxes are not under consideration for the time being, according to Minister of State for Financial Affairs Obaid Humaid Al Tayer.
The minister said each country has the flexibility to introduce VAT within this time frame. "A lot of ground work needs to be done before implementing VAT. The private sector will need time to prepare for complying with tax rules that is the reason we are giving enough time for all," said Al Tayer.  Younis Al Khouri, undersecretary to the UAE's Ministry of Finance, has said that an estimated Dh12 billion would be generated by the VAT tax in the first year.
Also read: 10 things you should know about VAT in the UAE
Analysts pointed out that although there are concerns that the introduction of VAT in the UAE may escalate the cost of living and doing business in the country, the impact of such a low rate of five per cent could be negligible, especially if the essential food items are exempted.
The session will be chaired by Dr. Amal Abdullah Al Qubaisi, Speaker of the FNC.
The FNC members will also pose four questions to the Minister of Education regarding Cabinet Resolution number 19 of 2006, on the role of nurseries at the ministries and other public institutions, as well as two questions on the emiratisation of school bus supervisors, and sick leaves issued to students of Higher Colleges of Technology.
The FNC will also discuss the federal draft law on restructuring the Emirates Centre for Strategic Studies and Research, and a topic on international reports about the UAE.
An FNC member will put a question to Obaid bin Humaid Al Tayer, Minister of State for Finance Affairs and Deputy Chairman of General Authority for Pensions and Social Security, on retirement benefits.

• Abu Dhabi