ADC - Spring 2007 - Financial Section

The UAE used to be the expat’s tax-free land of plenty but things are slowly and surreptitiously beginning to change. The Government introduced this year, unheralded, a standard 10% Service Tax and 6% risible Tourism Tax at all restaurants. OK that’s still equivalent to less than standard European style VAT, but for a country that that is aiming to woo tourism before the oil runs out it seems a bit short sighted. Fears are that this is the thin end of the wedge and that this tax-free haven will begin to change dramatically. The effect on the manual labour force will be significant.