Inflation of 1.4% projected post VAT in UAE

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At a press conference in Abu Dhabi, the Federal Tax Authority Director projected an optimistic inflation rate of 1.4% post VAT implementation in UAE. Although VAT will be a uniform 5%, the direct impact on consumer price is expected to be around 1.4%.

The new tax measures will not affect the UAE’s position or competitiveness as these taxes are amongst the lowest worldwide, the Federal Tax Authority’s top official highlighted.