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VAT . . . a Good Thing?

10-TRE165-Trends GCC Stock.pdf - Adobe Reader

The tax-free environment in the GCC is set to change, VAT will help GCC economies experience diversified growth, says Mas Meghji


May 17, 2012 3:18 by

Countries will continue to face fiscal pressures to increase tax col­lections to fund social programs and sub­sidies. We will also see a move towards more complex tax laws and regulations to broaden the tax net and enforce com­pliance. These measures will create an increasingly challenging tax environ­ment in many countries as the assess­ment process will become more involved with increasing level of scrutiny relating to cross-border transactions and related party transactions. These trends will con­tinue in almost all Mena countries.”

The governments in the oil-rich Arab region have been forced to take populist measures to ward off the ripple effects of the Arab Spring and keep their popu­lace content. Is the delay in implementing VAT something to do with the change in regimes? Most of the economics expert answered: affirmative.


- Mas Meghji

 First published in Trends

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