|By Arabian Post Staff| The UAE has started the process of staffing the Federal Tax Authority, which will be responsible for the implementation of the proposed federal tax system, beginning with the introduction of VAT.
The Ministry of Finance is scouting around for a Compliance and Enforcement Director, who will help maximise Federal tax revenues through the development and implementation of compliance and enforcement strategies.
Deloitte LLP is advising the Ministry of Finance on the structure and enforcement mechanism of the new government entity, Bloomberg reported quoting two people familiar with the matter.
The collapse in oil prices has forced Gulf states to broaden revenue collection, the first major initiative in this regard being the introduction of VAT across the GCC from 2018. Other forms of direct taxes are also expected to follow, although the Gulf countries collect substantial amounts in the form of indirect taxes by way of various kinds of fees and charges.
According to reports, the U.A.E. expects to generate about AED 10-12 billion from VAT in the first year of implementation. The IMF estimates the U.A.E. it will post a budget deficit of 3.9 percent of economic output this year, wider than 2015’s 2.1 percent.
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