All six Arabian oil monarchies will introduce value added tax (VAT). This can happen already in 2007 in preparation for the creation of the so-called "Common Gulf Market".
"The introduction of the tax that is levied in most countries of the world is only a matter of time," said Mohammed Obaid al-Mazrui, assistant secretary general of the Arabian Gulf Cooperation Council (GCC).
The development of a new tax system, within which VAT can be introduced in 2007, is being undertaken by the Emirates. Advisory services offered by the British and Australian companies. Suggestions are awaiting from a number of other consultants.
The Emirate employee of the GCC, directly involved in the preparation of the introduction of VAT, (whose members along with the UAE are Saudi Arabia, Kuwait, Bahrain, Qatar and the Sultanate of Oman) said that the tax, which is being prepared taking into account the experience of other countries, can only be said in general terms . They are not expected to be subject to drugs, baby food, or some basic food items.
The introduction of a single tax requires the full consent of all six countries in the region in which it will operate. The decision will be discussed at the level of finance ministers and taken by the heads of state.
Al-Mazrui believes that the collection of the first single tax for all monarchies will not adversely affect the influx of investment capital into the countries of the region.
