Taxation in the UAE comes within the framework of an initiative at the level of the Cooperation Council for the Arab States of the Gulf aimed at diversifying the economies of the region. In light of the decline in oil prices in general in recent years, the countries of the Cooperation Council for the Arab States of the Gulf have to consider new sources of revenue to reduce dependence on hydrocarbon products as a major contributor to the public treasury. Accordingly, the countries of the Cooperation Council for the Arab States of the Gulf agreed to sign unified framework agreements for the implementation of value-added tax and excise tax. Each country will implement domestic legislation to implement these taxes. UAE nationals and residents enjoy exceptional public services such as healthcare, roads, education, parks, social services and infrastructure. The entire cost of these services is paid by the government. Hence, the imposition of value-added tax and excise tax contributes to the diversification of the state's revenue sources, enabling it to continue providing its public services for future generations with a high level of quality and effectiveness.
