Best Iftars In Dubai for Ramadan 2019 The holy month of Ramadan is one of the most awaited time of the year for the residents of Dubai. Right from an impressive and magnificent array of Ramadan tents in Dubai to the best iftaar and suhours in town, we bring you our top selection of the Best [...]
It’s no surprise that the residents of Dubai have enjoyed decades of Tax-free living and it’s been one of the biggest boons of being in Dubai for each one of us.
As we all know, starting next year from the 1st of January 2018; There will be an implementation of VAT – Value added tax on certain goods and will be set at a minimum of five percent on products purchased by the final customer.
Although, the Government has exempted 94 food products, as well as necessities like school fees, medical bills from being taxed. Other products like tobacco, sugary drinks & junk food will be seeing a 100% hike in the prices due to VAT, which is not entirely a bad thing.
As per the experts, the implementation of Value Added Tax is to deliver on long-standing plans for economic diversification away from oil, while still being able to deliver social and economic programs for the UAE.
As per Sultan Al Mansouri, minister of economy – Tax implementation in the UAE is expected to yield Dhs12 billion in the first year and up to Dhs20 billion during the second, which will add on to the income of the UAE government and improve the standard of Public services provided to the people living in the UAE.
Unfortunately, one of the downsides of VAT is that the cost of living may go up a tad bit. Although, studies and surveys in multiple countries have shown that there was no acceleration in the rate of price rises attributable to VAT.
On the brighter note, many restaurants, nightlife spots, and Hotels will have promotions and deals to make up for the raised prices. Experts say that the restaurants might even come up with a day with tax-free meals to retain their customer base.
And while the prices are set to rise in the coming year, the city has some great deals going on right now, which is ought to make you feel better without leaving a big dent in your pockets.