Page 11 - ARUBA TODAY
P. 11
WORLD NEWS A11
Thursday 28 December 2017
Tax-free no more: Saudi Arabia, UAE to roll out VAT in 2018
By AYA BATRAWY real estate brokerage costs In this Dec. 20, 2017 photo, people take selfies with a giant Christmas tree at a shopping mall in
Associated Press for renters and buyers.
DUBAI, United Arab Emir- Other Gulf countries are ex- Dubai, United Arab Emirates. Residents in the traditionally tax-free haven of Dubai are preparing
ates (AP) — Saudi Arabia pected to implement their
and the United Arab Emir- own VAT scheme in the for higher prices when the government imposes a 5 percent value-added tax on most goods like
ates, which have long coming years.
lured foreign workers with Stores, gyms and other re- food, gasoline and water and electricity bills starting Jan. 1, 2018.
the promise of a tax-free tailers are trying to make
lifestyle, plan to impose a the most of the remaining (AP Photo/Kamran Jebreili)
5 percent tax next year on tax-free days in Saudi Ara-
most goods and services to bia and the UAE, encour- with plans to spend 978 bil- IMF Mideast director Ji- summer imposed a 100 per-
boost revenue after oil pric- aging buyers to stock up
es collapsed three years before the VAT is rolled out lion riyals ($261 billion) this had Azour said VAT is part cent tax on tobacco prod-
ago. on Jan. 1, 2018.
The value-added tax, or Even with a five percent coming fiscal year as the of a long-term tax reform ucts and energy drinks, and
VAT, will apply to a range jump in prices, the tax rate
of items like food, clothes, is still significantly less than government forecasts a to help Gulf states reduce a 50 percent tax on soft
electronics and gasoline, the average VAT rate of 20
as well as phone, water percent in some European boost in revenue from the their dependence on oil drinks. VAT, however, is by
and electricity bills, and ho- countries.
tel reservations. “If you compare with Eu- introduction of VAT and revenues. far the most wide-ranging
Elda Ngombe, a 23-year- rope, I don’t think it’s as
old college graduate expensive. Only in rent and plans to reduce subsidies. “It is something that will al- tax to be rolled out in the
who’s looking for a job in food,” said Vera Clement,
Dubai, said there’s one a mother and assistant Still, Saudi Arabia is facing a low the government to di- two countries. A company
specific purchase she’s manager of restaurants
planning before next year’s from France who has lived budget deficit until at least versify revenues,” he told in Dubai called Katerpillar
price hike: “Makeup, be- in Dubai for three years.
cause I can’t live without “We are going to be more 2023. The Associated Press on has held training classes
makeup.” careful when we buy some-
“I am scared because ev- thing,” she added. The International Monetary the sidelines of an event for businesses trying to pre-
erything is actually expen- The National newspaper,
sive already in Dubai. The based in Abu Dhabi, says Fund has recommended in Dubai, adding that any pare for VAT’s compliance
fact that it’s actually add- the cost of living in the UAE
ing 5 percent is crazy,” she is expected to rise about oil-exporting countries in immediate slowdown in and accounting rules. Kat-
said. 2.5 percent next year be-
There will be some exemp- cause of the VAT. Salaries, the Gulf introduce taxes spending by consumers erpillar says more than 500
tions for big-ticket costs like meanwhile, remain the
rent, real estate sales, cer- same. as one way to raise non-oil next year will be compen- people have signed up for
tain medications, airline As the government adjusts
tickets and school tuition. to lower oil prices, the UAE revenue. The IMF also rec- sated for with government their classes over the past
Higher education, howev- is expected to raise around
er, will be taxed in the UAE. 12 billion dirhams ($3.3 bil- ommends Gulf countries investments. In line with IMF three months. A six-hour
Extra costs parents pay to lion) from the tax.
schools for uniforms, books, Meanwhile, Saudi Arabia introduce or expand taxes recommendations, Saudi course costs 1200 dirhams
school bus fees and lunch recently unveiled the big-
will also be taxed, as will gest budget in its history, on business profits. Arabia and the UAE this ($325).q
Malaysia court acquits Australian woman of drug trafficking
KUALA LUMPUR, Malaysia 54, was exonerated after prohibited drug. a connecting flight to Mel- online romance, and had
(AP) — An Australian wom- Judge Ghazali Cha of the Pinto Exposto, a mother of bourne. The drugs were dis- been asked to carry a bag
an was found not guilty Shah Alam High Court said three from Sydney, was ar- covered when she put two full of clothes.
Wednesday of trafficking he was satisfied that she rested at the Kuala Lumpur bags through the security She said she was unaware
1.5 kilograms (3.3 pounds) did not know there were International Airport in on scanner when exiting the that the bag also con-
of crystal meth at Kuala drugs in her bag. Dec. 7, 2014, when the bag airport. tained drugs.
Lumpur’s airport three Malaysia has a mandatory she was carrying was found Pinto Exposto had claimed Three Australians have
years ago, avoiding a pos- death sentence for any- to contain the drugs. that she went to Shanghai been hanged for drug of-
sible death sentence. one found guilty of carrying She had arrived from to meet a U.S. serviceman fenses in Malaysia since
Maria Elvira Pinto Exposto, more than 50 grams of a Shanghai and was to catch with whom she had an 1986.q
