Gulf governments should have a rethink on VAT

Article published by and copyright of GulfNews.com

Selective changes in tax structure at times like these will benefit economies

Since the outbreak of the coronavirus, Gulf countries have taken a series of urgent measures to support the business sector, companies and individuals, to help them cope with the economic fallout. For businesses, these nations created stimulus packages in the tens of billions of dollars, cancelled several government service fees, and provided discounts on utility bills.

However, there are still some financial instruments that can contribute effectively to reducing risks posed to businesses and individuals. For example, the Value Added Tax (VAT) is of great importance in boosting economic activity and giving it momentum in difficult times. This calls for a reform of the VAT system and reconsidering it on a temporary basis.

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