The UAE authorities noted a decrease in the number of citizens in connection with the entry into force of value added tax.
According to Sultan Ibn Saeed Al Mansouri, UAE Minister of Economy, consumer concerns related to the introduction of value added tax in the Emirates are reduced.
At a meeting of the Committee for the Protection of Consumer Rights, the minister noted that the number of complaints from citizens decreased from 3261 per day from the moment the law came into force (January 1, 2018) to 493 in two weeks.
"The committee received a large number of complaints from citizens during the first days of the VAT. People faced some problems, but their fears began to subside over time," the official said on Saturday.
Khalid Ali Al Bustani, head of the Federal Tax Service (FTA), added that complaints from citizens relate to three main problems: rising prices, tax identification numbers, and erroneous VAT on certain products.
"We notified the trading enterprises and departments that people complained about and gave them time to correct the violations in accordance with the tax laws," Al Bustani said.
“The committee constantly monitors the market in order to avoid any violations, and if they are detected, takes the necessary measures against violators,” said Muhammad Ahmed bin Abdul Aziz Al Shekhhi, Assistant Minister of Economic Development.
The introduction of VAT on January 1 is due to the fact that the Persian Gulf countries, including the UAE, are trying to reduce their dependence on oil revenues due to lower energy costs, increasing tax revenues from the tax budget to maintain the current level of economic growth.
Representatives of the six member states of the Arab Gulf Cooperation Council concluded a framework VAT treaty at the beginning of last year, which approved the introduction of VAT in all member states; this year the tax has entered into force only in the UAE and Saudi Arabia.
