Gulf plans to roll out value-added tax in 3 years

This file photo shows an aerial view of Burj Al Arab, the luxury hotel, center, in Dubai, United Arab Emirates. (AP)

Gulf states have agreed on key issues for implementing value-added tax in the region, an official from the United Arab Emirates finance ministry said on Monday.

The agreement was reached at a meeting of representatives from Gulf ministries a few days ago, Younis Haji al-Khouri, undersecretary at the UAE ministry of finance, told reporters on the sidelines of a media event.

Khouri said the target for introducing the tax was three years, and that it would take between 18 and 24 months to implement once a final agreement has been reached.

The six Gulf countries will exclude healthcare, education, social services and 94 food items from VAT once implemented, and there are a couple of areas -- including financial services -- where agreement was still lacking, Khouri added.

Last Update: Wednesday, 20 May 2020 KSA 09:49 - GMT 06:49