Oct. 10 (Bloomberg) -- The United Arab Emirates may set a value-added tax of 5 percent as part of a regional plan, the Finance Ministry’s Younis Haji Al Khouri said in Dubai today.
The process is still in “its early stages” as the U.A.E. just completed a study on the effects of the VAT both socially and economically, undersecretary of the Ministry of Finance Al Khouri said in an interview.
It will take three years to fully implement the tax from the time its general principles are agreed upon collectively with the Gulf Cooperation Council, he said. The implementation will take place “beyond 2013,” he said.
The U.A.E. will announce its federal budget for the year tomorrow with a “slight deficit but lower than last year” and “much better forecasted revenue,” Al Khouri said, without disclosing details.
--With assistance from Ladane Nasseri in Dubai. Editors: Andrew J. Barden, Claudia Maedler
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