UAE says no plan to hike VAT

UAE says no plan to hike VAT

The UAE's Ministry of Finance on Tuesday said it raised Dh11.6 billion in value-added tax (VAT) revenues in the first eight months of 2020 and the government has no plans to raise VAT to more than five per cent.

While excise tax revenues increased 47 per cent year-on-year to Dh1.9 billion during January-August 2020 period.

Saeed Rashid Al Yateem, assistant under-secretary of resource and budget at Ministry of Finiance, said 30 per cent of VAT revenues will be distributed to the federal government and 70 per cent to local government.

While the federal government's share of excise tax revenues on tobacco products stood at 45 per cent and 55 for local governments. The federal government's share of the excise tax revenues