Speaking during the Arab Fiscal Forum in Abu Dhabi, the Managing Director of IMF, Christine Lagarde said that UAE should get ready to pay taxes. She said that it’s time for the Gulf to start taxing its citizens.
“Higher government revenues would create much-needed fiscal room for manoeuvre, and allow for more spending on … infrastructure, healthcare and education,” Ms Lagarde said.
Gulf budgets have been hit as oil prices declined from above $110 per barrel in June 2014 to less than $30 per barrel in January this year. This has led to Gulf states, which continue to depend on the sale of oil for a majority of their revenues, running double-digit fiscal deficits. Of the Gulf states, only Kuwait and Qatar ran deficits below 10 per cent of GDP last year.