VAT impact on car industry

[amid]

With VAT being introduced round the corner, let's discuss any impact of VAT introduction on car industry in UAE. I am hearing lot of rumours of insurance being doubled, car maintenance will be tripled, used car and rent a car will be more expensive and what not crap on daily basis. 

Looking forward to hear something solid, concrete and fact based news or official proposal of possible impact of VAT in cars world.

[Rahimdad]

@amid with all due respect, there are always a lot of talk when any changes happen. We can only know the facts when all this comes in to place and that to will be tweaked to suit all as an when required as it is something new to this region. We will learn to live with it, accept it and work the best we can with the new structure once it is introduced. I have stayed in UAE all my life and everything used to be free, when they were introducing parking meters and Salik, everybody was a lot of talks, but once in place we all learned to change with the times and adopt it as normal practice.

[Barry]

I've heard it will be 5%. 5% is nothing really. I would be happy to pay 5% for the privilege of living and working in UAE. Before I came here I was paying an extra 20% on top of everything I purchased. That's not even counting things like the extra 60p (3 dhs) they charge as tax on a litre of fuel. On top of the 20% vat.  And before I even purchased anything, they had already taken 20% income tax and 12% national insurance so 32% of my salary was gone before I could spend any of it. 5%? Where do I sign up?

There will be ways around it though. There will still be plenty of guys around working for cash in hand payment, no accounting etc. 

[Gaurav]

Rumors are rumors @amid, I even heard that luxury goods especially cars will have upto 100% tax from 2018 from one of my colleague just yesterday. Like Rahimdad said, time will tell the reality and secondly everyone will adjust after little noise.

I seriously hope and pray that salaries should get adjusted to reflect such value added spending.