Gas prices in the UAE will rise by five percent from January 1, 2018.
Khalid Al Bustani, Director General of the UAE Federal Tax Authority (FTA), confirmed that from January 1, 2018, gas prices in the country will rise by five percent at once, with the introduction of VAT.
According to Al Bustani, crude oil and natural gas are not taxed in accordance with Federal Decree-Law No. 8, issued in August 2017.
The recently issued rules related to taxation of various types of oils and gases, but it was unclear whether this applies to gasoline people use to refuel their cars.
Shiraz Khan, senior tax consultant at Al Tamimi & Company law firm, said that neither the law nor the published rules directly indicate VAT on gasoline at gas stations, but it appears that a five percent tax will be applied to this group of goods with January.
In November, in Saudi Arabia, where VAT is also applicable from January 1, 2018, it was announced that a standard five percent rate would apply to gasoline.
