Officials from the Gulf Cooperation Council (GCC) states denied considering plans to double the value-added tax (VAT) rate to 10 percent.
“This is untrue; there are no current plans to raise VAT,” Al-Eqtisadiah newspaper reported on Wednesday, citing the Undersecretary of the UAE Ministry of Finance, Younis Al Khoury.
No changes have been introduced to the VAT system, Khalid Ali Al Bustani, director general of the Federal Tax Authority, said.
Khalifa Hamada, the Undersecretary of Kuwait's Ministry of Finance, ruled out a study to hike VAT, as some states have not yet applied the standard 5 percent tax.
Hamada said that projections for increasing VAT to 10 percent are baseless, adding Kuwait will apply the 5 percent VAT under the GCC unified agreement.
Earlier this week, the international ratings agency S&P said some GCC countries could increase VAT rate to 10 percent, due to discrepancy between 5 percent statutory and effective tax rate, Argaam reported.
Saudi Arabia and the UAE have published VAT laws and started implementing the levy on January 1, 2018.
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