UAE has removed the 5 percent Value added tax implemented on Gold and diamonds on January 2018 and now all the precious metals and stones are tax free. Find out below how the new plan would be of advantage to you.
The New Amendment
UAE has experienced a 60% fall in the sale of gold after the 5 percent tax was implemented and the move have been regulated to ease gold and diamond investors. The new initiative will stimulate investment as well as stabilize the nation’s oil and diamond sector. The World Gold Council stated that UAE is yet to recover its demand for gold which was fallen low since 2008 financial crises. All gold and diamond merchants in UAE has adopted the new move. According to a jewelry chief in UAE, Gold is one of the major tourist attractions in UAE and the UAE jewelry sector produces billions of profit every year. The investors and other consumers are going to benefit from the new tax free move and the gold demand will rise just like before. The gold and diamond market has gone through a difficult phase in the Q1 of 2018. The precious stones and metals play an integral role in UAEs economic diversification and the tax free move anticipates further market growth for this sector.
The movement is also in support to maintain the ranking of UAE for the ease of doing business. UAE updates its rules and regulation frequently to incorporate international standards and offer the best to its citizens and expats, nevertheless UAE also keeps a tab on which rules help the business men prosper and the put down or eliminate any rules which do not produce any benefit. UAE offers optimal safe environment, a multi diverse market, state of art infrastructure and fair legislation/policies which make UAE the Global Hub for trade.