Saudi Arabia and the United Arab Emirates (UAE) introduced value-added tax (VAT). These are the first two countries in the Gulf which have introduced the VAT system.
The 5% levy is being applied to the majority of goods and services. The UAE estimates that in the first year, VAT income will be around 12 billion dirhams. Petrol and diesel, food, clothes, utility bills and hotel rooms all now have VAT applied. But some outgoings have been made exempt from the tax, or given a zero-tax rating, including medical treatment, financial services and public transport.
Static/Current Takeaways Important for IBPS Clerk Mains 2017 Exam-
- UAE Capital- Abu Dhabi, Currency- Dirham.
- Saudi Arabia Capital- Riyadh, Currency- Saudi riyal.
Source- DD News