ABU DHABI, Nov 4 (Xinhua): The plan of the Gulf Cooperation Council (GCC) to introduce a value added tax (VAT) could be further delayed as GCC states lack consensus on taxation and the GCC currency union, local newspaper Gulf News reported today.
"Any delay in achieving the GCC currency union will have an impact on the introduction of VAT across the region," said Mohsin S Khan, International Monetary Fund (IMF) director for the Middle East and Central Asia.
An announcement of GCC central bank governors meeting in September said that the 2010 target deadline for the bloc's currency union is not realistic. In October, the central bank governor of the United Arab Emirates (UAE) admitted that the currency union could be behind schedule by more than five years because GCC states have not yet achieved the dynamics of a common currency market.
"Besides, all Gulf states are now experiencing an economic boom that has generated huge fiscal surpluses. ... In this context, introduction of tax will be a politically sensitive subject," Khan added.
The IMF has consistently urged the GCC governments to introduce taxes within fiscal and economic reforms in the past years, and it has been advising the UAE on the technicalities of introducing VAT.
GCC VAT plan likely to be delayed further
FE Team | Published: November 05, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
Share if you like