25 May Finance Ministers of GCC Explore VAT and Economic Issues
The GCC countries have already signed the treaty for implementation of VAT by 2018 and the preparation for successful implementation is already going on a war footing basis. The UAE and KSA are expected to introduce VAT with effect from 1 January 2018 and the rest shall follow within a couple of months. The lawmakers in all the GCC countries have already tightened their belts and the business in the region are also doing the same. In line with the same, the top delegation from finance ministries of the GCC nations met on 4 May, 2017 at the Bahrain to explore VAT and other related taxation issues.
The ministers of finance discussed the recommendations of the specialized technical committee about the unified agreements on VAT and selective taxation entered into by GCC nations. Payment of taxes will be a critical issue for implementation and the ministers have deliberated on the recommendations submitted by the Central Banks of member nations and officials of monetary agencies regarding linking the payment system in GCC. The recommendations made by the technical committees of the Financial and Economic Cooperation regarding the proposals made by member nations for promoting cross border trade and economic cooperation were also discussed in the meeting.
They have also discussed the recommendations made by the Customs Union Authority and the GCC capital market committee. Both bodies play a vital role in trade around the GCC and promoting economic integration is one of the key agenda of this meeting. The members explored the key issues for economic and developmental work in GCC nations.