Qatar, other Gulf states to tax citizens for the first time
The Gulf Cooperation Council (GCC) - a loose fedration of Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates - has agreed to introduce VAT following costly military campaigns and a drop in global oil prices.
Saudi Arabia has withdrawn tens of billions of dollars from global investment funds in an attempt to reduce its budget deficit, The Times reports.
Despite this, it has pursued an aggressive foreign policy, supporting anti-government troops in Syria and spearheading an eight-month military campaign against Iran-backed rebels in Yemen.
Oil prices have dropped near $40 a barrel this week, the lowest since the financial crisis.
Taxation is considered an alternative source of income for Gulf states hoping to move their economies and populations away from a dependence on oil and gas.
The council announced a target to introduce VAT over the next three years. Healthcare, education, social services and 94 food items will be excluded.
To limit smuggling and competetiveness, the countries aim to introduce the tax at the same time. [By Samuel Osborne, Independent]
Samun: The headline says its for citizens and not all residents...plus most of the big bits like healthcare and education are still to be free so yeah...its obviously a plan which is still in its infancy, so lets wait for the final product and see whats what...
And also not to forget the rent paid by you guys also goes to local landlords. First of all they need to revised their business policies rather than keeping eye on expat pockets.
and dont forget your Qatari business partner owns 51% of your business, which is more that Tax can ever capture from public
britexpat: There is already shipping tax, import duties that are indirectly added to consumer goods so now to add these taxes should mean outrage
mohdata: WT and I are elders. In the old days, the main reason for taxation was to fund wars...
WT: Good thing you don't rule a country then :-)
Taxes, when used properly, provide for the basic needs of costly military campaigns. That's what I call "proper use".
Mark_nas: Im no expert, but i see no reason why taxation would be against the spirit of islam; not all countries have abundant natural resources...the government has to generate income from somewhere...besides, taxes when used properly provide for the basic needs of the population...further, as muslims, we are supposed to obey the rule and rulers of the land, as long as they do not drive us to sin...
Bad news. (((( Tax free zone was one of the advantages of GCC countries.
nice business for US, buying cheap oil and selling weapons hahaha
Thanks for the information...
however, i thought taxation is not supported based on Islamic law?
Regards.
Wise move. Revenue has to be generated somehow