The UAE has no plans for a value added tax (VAT) rate hike, following the news that Saudi Arabia would be tripling its rate from 5 percent to 15 percent, the UAE Ministry of Finance told Al Arabiya on Monday.
The UAE's VAT rate currently stands at 5 percent and was implemented at the beginning of 2018, although certain goods remain tax-exempt.
All six of the Gulf Cooperation Council (GCC) countries agreed in 2016 to introduce a VAT system with a rate of 5 percent, with the UAE and Saudi Arabia introducing the system in 2018 and Bahrain in 2019.
Last month the country's tax authority said that it would delay the due date for payment of VAT ending March 31 until May 28, as a measure to support the economy amid the COVID-19 coronavirus pandemic.
Earlier on Monday, Saudi Arabia announced a variety of economic measures that would be put in place to combat the economic fallout of the coronavirus, including a VAT rate increase.