Saudi, UAE introduce VAT in first for Gulf

In a first in the Arabian Gulf, Saudi Arabia and the United Arab Emirates introduced value-added tax from Monday to boost revenue after oil prices fell three years ago. In a double blow to Saudi residents, Riyadh hiked petrol prices by 127% with immediate effect. The five percent sales tax on most goods and services is expected to raise $21 billion in 2018. Other Gulf States Bahrain, Kuwait, Oman and Qatar will introduce VAT in 2019. Riyadh and Abu Dhabi are planning to use VAT returns for infrastructure development and upgrading public services. None of the Gulf States levy any personal income tax and they do not have any plans to do so in the near future.