IMPORTANT ANNOUNCEMENT: All Types Of Food In The UAE Will Now Be Taxed Under VAT

That tax-free life in Dubai is all but a distant memory. 

What was initially thought to be certain essential food items, all TYPES of food in the UAE—including the staples such as bread and rice—will now be subjected to tax from January 1, 2018. 

This news comes after it was announced that water and electricity will also be subject to the 5% tax increase.

The overall cost of living in the UAE is expected to rise by about 2.5%, after VAT

The first announcement about the introduction of 5 percent Value Added Tax on goods and services in the Gulf states came in 2015. The idea behind the move is to bolster state revenues and contribute to the development and modernisation of our country. 

According to Sultan Al Mansouri, the Minister of Economy, the VAT could generate AED12 billion in its first year and AED20 billion in its second year.