Will UAE collect 15% tax on cars?!

[jacsparo]

In an August 2015 report, the International Monetary Fund (IMF) said the UAE could generate extra revenues worth as much as 4.1 per cent of the non-hydrocarbon domestic product (GDP) by introducing a 15 per cent ad valorem tax on passenger vehicles and broadening the coverage of its corporate income tax scheme, aside from collecting a five per cent VAT.

Source: http://gulfnews.com/business/economy/imf-recommends-not-just-vat-but-also-tax-on-cars-all-companies-1.1563412

 

After collecting 4.2million Dhs per day from Salik why would Dubai need tax on cars???  

 

 

[zulfi]

There have been lot in talks and draft stage going on in UAE lately including above and income tax as well. Question is what value added benefits govt is ready to offer against all these VAT, taxes and duties....?

[mattd]

"Tax haven" title will go away with many expats and huge cash flow if that ever happen before 2020 dream....!

IMF is there to advice and every nation need to accept as per their appetite for risk and stability from economics aspects.

[kabirae]

Will it apply on all the cars or only on hi-end luxury cars. Imagine making Yaris and Tiida 15% expensive means half of UAE will be carless in next 1-2 year. Actually it's good to kill the traffic. lol.

[victor]

Though it's just a suggestion, and even if it applies it will be only on new cars and big suffering will be the car dealer who is anyways who is anyways making hell of a money by having monopoly in each car brand. So this will ruin their car business revenue eventually and this type of ideas will be last to get implemented in Dubai as per my thought and assumption.

[Danny]

To be honest, with so many reforms happening in Dubai to make money and grow economy to make it more sustainable I don't think this is very far off in the future. Especially before 2020, govt will defintely try to make a balanced and health economy, come what may requires: taxes, vat, toll etc. 

Bottom line: Enjoy your dream car as soon as you can before it becomes more difficult to afford

[sidhan]

I so agree with Danny, in last 5 years we have witnessed so many price increase from fuel to food, property to dewa and hospital to school fees that this suggestion might get accepted and will take another toll on expats thin wallet.