It’s been reported that:
In order to prepare local companies for the potential implementation of a Value Added Tax (VAT) system in the United Arab Emirates (UAE) and throughout the GCC, PricewaterhouseCoopers (PwC), the leading global professional services network, has launched the Global Indirect Taxes Academy to share its expertise on topics relevant to this market and to discuss international best practices in indirect taxes, and will be a centre of excellence covering the Middle East region.
To accompany the launch and to assist businesses in understanding this tax, PwC has also released ‘An Information Guide to VAT’.
You bet it has. PWC thinks VAT is the answer to all taxation problems. Of course it does. Very little of the charge falls on companies. The proportionately smallest part almost invariably falls on the wealthiest. Low paid labour pays proportionately the highest rate. It suits their political agenda of shifting the whole burden of tax from capital onto labour very well.
And like the other Big 4 firms they’re sucking up to the UAE and GCC right now. Some more economies for them to wreck.
2 Responses to “PWC: promoting VAT in the UAE”
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Richard,
Very little of the charge falls on companies.
Yes, tax incidence is alive and well. Something to keep in mind when the statists are howling for even more “tax” on firms. The firms will duly and rightly pass those charges along as well.
Georges
There is, as ever, a fundamental flaw in your argument
VAT is not designed to fall on companies
Corporation tax is
So the incidence argument is mine to claim on this occasion, not yours
Richard