Abu Dhabi to levy fee on expat tenants, could Qatar follow?
Abu Dhabi will soon begin imposing fees on expatriates renting homes in the emirate. This step is being taken to increase state revenues that fell due to low crude prices.
The municipal fee, equivalent to 3% of a tenant’s annual rent, will take effect retroactively from February 2016, The Peninsula quoted the Abu Dhabi Department of Municipal Affairs & Transport as saying.
Last January, the largest member of the United Arab Emirates hiked water and electricity charges, and in July the International Monetary Fund estimated the government would run a fiscal deficit of 6.9% of gross domestic product in 2016.
Thanks to falling oil prices, Qatar has also seen huge budget deficits, with the government taking several austerity measures to bring things under control.
Price of fuel, heavily subsidised in the past, is now regulated monthly according to fluctuations in international prices and there are also talks of implementation of value added tax (GCC-wide) in the long run.
Dubai, the UAE’s financial hub, has been charging tenants a 5% municipality fee. If it becomes the norm in the UAE, then there are chances that Qatar could try it out as well.
Do you think such a fee would come to Qatar?
Difference is Rent between Abu Dhabi and Qatar....First Qatar should bring down the rents by increasing supply then they should think about the revenue.
Its already there. I paid 2.5 percent as stamping charges
@Mr. Notice - I'm thinking your Molten Metal's brother. Or at least very closely related.
We should thank the government for not taking any income tax from individuals unlike our own countries. Even if they charge municipality fees in future, we should not exhibit the dissatisfaction
QATAR is not ABU DHABI.
difference is the rents in UAE, its 3-4 times lower than it is here. so to pay 200-300 is not a problem But here it would be thousands...
Why not? Its a good means of generating much needed revenue for the government
I believe it would. That has been the general trend in the GCC countries.