To ensure that the tax money collected will be put to good use, the UAE cabinet is considering allocating 70 percent of VAT revenues to local governments.
If deemed viable, the allotted money will be used to aid development projects and services across the country.
The announcement comes as many businesses and residents are still coming to terms with the implementation of VAT on 1st January.
Speaking about future plans, Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and ruler of Dubai, said: “The government will be transparent about the nature of these projects and firm in controlling the markets to prevent price hikes, and will continue to consult with citizens in order to serve their interests in the first place.”
Meanwhile, a survey published by the finance comparison website yallacompare.com reveals that 44.6 percent of residents fear that they’ll struggle to meet the increased cost of living.
On the other hand, 51.8 percent said they’re slightly worried about the price adjustments, while 3.6 percent relayed lack of concern on the effects of the new tax system to their budget.
In light of all these opinions, the Federal Tax Authority has reminded the public to be discerning with all the information that they hear or read about VAT.
To ensure that the information is correct, the FTA asked the public to visit its official website tax.gov.ae and social media accounts with handle @uaetax.