The Qatar Cabinet has recently approved a draft law on income tax and value-added tax (VAT).

The Gulf Cooperation Council (GCC) is planning on introducing a 5-percent VAT in 2018. According to Qatar News Agency (QNA), the GCC has long planned to adopt the tax as a way to increase non-oil revenues.

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During the Cabinet meeting, a draft decision was also made to issue a regulation of the selective tax law. QNA stated, “The draft executive regulation include the provisions concerning tax entitlement, the declaration of the loss or damage of selective goods, inspection of damaged goods, registration, tax declaration, rules of payment of tax in the case of local production, maintaining of accounting systems, the language of accounting records, and control and inspection ruler.”

As of yet, there hasn’t been any clarity on the type of businesses and services that will be impacted by the VAT and which ones will be exempt from it.

The introduction of these taxes follow the sin taxes that were proposed earlier this year. The sin tax is imposed on products and goods that are “harmful to human health and the environment,” according to official sources.


VAT and income tax are common in many parts of the world. With the introduction of these new taxes in Qatar, the cost of living is expected to rise. 

A source speaking to the Peninsula stated, “This is true that VAT is prevailing in most economies across the world except a few counties in the Middle East. With the introduction of new tax, cost of living of people will also go up. So salaries of workers should also be increased accordingly.”

The exact date for the implementation of the taxes has not yet been set. Stay tuned for more updates.

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AngelPolacco

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