Haque: UAE Corp. Tax is Natural Step in Fiscal Reform

The video discusses the UAE's introduction of a corporate tax as part of its fiscal reform to diversify away from oil dependency. The tax rate is set at 9%, targeting larger businesses, with a potential increase to align with the G20's 15% minimum. Inflation in the UAE is relatively low due to government measures and a strong dollar, though food prices are rising. High oil prices benefit GCC budgets but increase consumer costs. The region aims to focus on strategic investments and reduce reliance on oil revenues.

What is the initial corporate tax rate introduced by the UAE?

• 15%

• 9%

• 20%

• 5%

Which businesses are primarily targeted by the UAE's new corporate tax?

• Non-profit organizations

• Small businesses

• Larger businesses

• Start-ups

How does the UAE government help manage food inflation?

• By subsidizing local farmers

• By reducing taxes on food

• By setting price caps on essential foods

• By increasing food imports

What is the main reason for relatively low inflation in the UAE?

• Government subsidies

• Strong housing market

• High oil prices

• Large housing component in the CPI

What has been the biggest driver of inflation in the UAE due to high oil prices?

• Food prices

• Transport costs

• Housing costs

• Healthcare expenses

How are GCC countries planning to use the windfall from higher energy prices?

• Increase subsidies

• Reduce taxes

• Invest in strategic sectors

• Increase general government spending

What is the focus of Gulf countries to reduce reliance on oil revenues?

• Increase taxes

• Reduce government spending

• Encourage private sector and foreign investment

• Increase oil production