“Eventually I think the introduction of personal income tax may be necessary depending on development in the oil markets and also in terms of reforms and what type of yields they provide and how the overall budget looks.”
Real estate taxes could be worth 1-2 per cent of GDP for countries in the region, according to the IMF.
The official also said not all of the GCC countries are likely to be ready to implement the 5 per cent regional value added tax rate in the first quarter of next year. Senhadji indicated the organisation was “sceptical” about whether the plan could be achieved on time due to a lack of preparation in some countries.
“Countries should not necessarily rely on the laggards to delay the reforms that are necessary for them to restore fiscal sustainability,” he said.
So far, only the UAE and Saudi Arabia have implemented the necessary laws to implement VAT on January 1. They are also the only countries within the group to introduce an agreed selective tax on soft drinks, energy drinks and tobacco products.
Bahrain, Kuwait, Oman and Qatar have yet to announce when they will implement the taxes, with the latter’s participation deemed less certain given the current boycott it faces within the group.
This articlefirst appeared in Gulf Business