Page 394 - Ministry of Economy - December 2017

12/25/2017 FNC member asks government to place cap on rising car prices ahead of VAT - The National
Tuesday, during a packed session that touched on the
cost of living, insurance and medical treatment.

The youngest member of the chamber referred to an
unspecified report that he said found the UAE has the
steepest car prices in the Gulf.

He said a cap, like that set out to ensure rental prices
could only rise by a certain amount and no more,

would be fair for consumers.

“Today there is a lot of talk that the UAE has the
highest prices in the Gulf, and with Value Added Tax...

there is a fear of inflation," he said.

"This is a trend that will have many affects on society."

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Read more on tax in the UAE:

Everything you need to know about VAT and a little bit
more

UAE's tax authority urges businesses to register for
VAT before Dec 4

VAT in the UAE: a big change is on the way and it
makes economic sense

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Mr Al Remeithi also said that many young drivers

overstretch themselves when they spend on a car.

But eventually the payments weight them down and

they "find themselves unable to afford any other social
commitments".

Minister of Economy Saeed al Mansouri said the

government was not willing to interfere in the “free
economy”, and had the environment to consider.

He also said a car remains a "luxury" and not a basic

necessity.

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