UAE's VAT to lead to higher inflation rates


(MENAFN) The introduction of VAT in the UAE by 2018 will lead to higher inflation rates, whereas the demand for luxury goods will be affected by additional VAT costs.

Accordingly, the healthcare sector would be least influenced by the additional VAT costs.

Moreover, UAE is predicted to produce almost USD 2.72bn to USD 3.26bn as a result of introducing VAT in the first year of its application.

Meanwhile, there is an urgent need to spread government revenues, which are still largely dependent on income from oil and gas.


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