Saudi Arabia and the UAE Bring in the VAT For The First Time in History

[Selva + 252]

These Gulf countries have attracted forein workers with the "no-tax life" promises for a long time, but the government now wants to increase their revenues at the time of oil price hike. A five percent tax will apply to most goods and services in those countries. 

[J Owens + 45]

The rentier states of the Middle East have been forced to transform after the oil price crash - taxation will only get harsher and huge subsidies will begin to shrink

[Vlad Kovalenko + 115]

Just 5 percent? Lucky them. 

[Adam Varga + 123]

Well it is 5 percent for now but probably will get higher as soon as they see how much revenues will they get from this tax. They estimate that during the first year VAT revenues will be about $3.3 billion just in UAE. 

[Selva + 252]

6 minutes ago, Vlad Kovalenko said:

Just 5 percent? Lucky them. 

Yes very lucky especially because they still have no plans to bring in income tax. That means most residents still pay 0 percent tax on their salaries. 

[Adam Varga + 123]

This is just their attempt to help the economies during these financial crisis and decline in oil prices. The citizens of these countries depend too much and too long on oil and gas. 

[Vlad Kovalenko + 115]

This seems to me more  like a desperate move and first indicator of running out of oil supplies.