Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE on Sunday approved the distribution plans for revenue collected by newly imposed value-added tax (VAT).
The authority said “VAT will provide our country with a new source of income which will contribute to the continued provision of improved quality public services into the future,”
70:30 VAT Distribution Ratio
Chairing the cabinet meeting, the ruler of Dubai approved the proposal for distributing the collected revenue in a 70:30 ratio. As per the order, 70 percent of the total vat revenue would be distributed among the local governments.
This would be primarily used for facilitating services and to support the UAE residents and also for ensuring better and strong community development.
Director general of the FTA, Khalid Al Bustani said “The efforts made by the Ministry of Economy towards protecting consumers are a crucial step in establishing systematic and accurate supervision of the market,”
The Sheikh further affirmed that the remaining 30 percent would be a part of the federal budget.
Check out Difference Between VAT UAE and VAT Saudi Arabia
Nuclear Energy for the People
The Dubai Ruler also announced plans for appointing an administrative board of the Federal Authority for Nuclear Regulation (FANR).
The ruler in his tweets shared that UAE would be the first Arab country to produce energy from nuclear reactors. He further confirmed that the country plans to get its fully servicing first reactor by 2018.