(MENAFN) The International Monetary Fund has accredited the UAE's practical economic strategies for having assembled large fiscal and external buffers and for evolving economic broadening away from oil.

The UAE introduced a clever policy last July to link the prices of petrol products with the global market by removing subsidies on fuels, thus inspiring the rest of the GCC nation who are following the UAE footstep.

The IMF managing director advised the GCC to introduce value added tax at the rate of 2pct and consider imposing corporate income taxes, plus she asked them to continue to invest in building tax administration capacity.

"I commended the UAE authorities for having built large fiscal and external buffers, advancing economic diversification and taking steps to address the costs of the sharp fall of oil prices," said IMF's director.