Combating coronavirus: UAE businesses seek VAT waiver for a year to stimulate demand

Combating coronavirus: UAE businesses seek VAT waiver for a year to stimulate demand

Private and family owned businesses in the UAE have requested the government to waive off value-added tax (VAT) for six months to one year in order to help stimulate demand in the economy.. A letter sent by family-owned business groups to Dubai Supreme Fiscal Committee have suggested establishing a private-public sector committee, reducing VAT from five per cent to two per cent, eliminating licensing fee, accelerating payment to suppliers and contractors, freezing of 2.5 per cent market fee, 50 per cent reduction in customs fees and water and electricity in order to help them overcome Covid-19 impact.. Rizwan Sajan, chairman and founder of Danube Group, said demand is slow across all the sectors due to job losses and salary cuts VAT relief will stimulate demand for consumer goods in the country.. Many countries around the world have also offered tax sops to businesses and consumers.. Since VAT is the only consumer tax applied and waiving off this tax can stimulate demand.. We request government to consider it on a priority basis.. We are quite confident that this step will expedite the recovery of the UAE economy as country reopens.. We also requested waiver on utility and telecom charges," said Sajan..