The implementation of the value added tax has affected the low-income workers in Saudi Arabia and UAE

In the past few days, Saudi Arabia and UAE have witnessed many demands, until the rising of product prices, because of the addition of VAT in the two countries to 5 per cent on most goods and services.

The tax will include sales of all kinds, water, electricity and telecommunications bills. Only exports of goods and services outside the Gulf Cooperation Council(GCC) and international transport are exempted, as well as imports of certain means of sea, air and land transport, investments of precious metals such as gold and silver, 99% purity, newly built residential properties, education and health sectors.

The Middle East and Central Asia Department of the International Monetary Fund (IMF) has not denied that applying VAT would have an impact on low-income earners.