The department of DED has already warned businesses before the implementation of VAT in the first month of 2018 via advisory that it will check any price hikes after VAT imposing asked, consumers, to report any violations and complaints.
The DED has already collected price details of goods in 2017 from retailers and it will start verifying it from the first quarter of 2018 to confirm that the price climb is not more than permitted level after implementation of 5% of the VAT.
Chairman, DED, Saif Mohammed Al Hajeri stated department has already taken up the plan across the emirate to check prices on sale setups and arranged a mechanism of communication with end-user to report any violations or complaints regarding the exploitation of the tax to achieve the exaggerated increase in prices.
DED asked all private sector companies and institutions to get registered in the tax system of the Federal Tax Authority, in order to make it the comfortable collection of the tax.
Undersecretary at DED, Khalifa Salem Al Mansouri, said that DED will take strict action in case of violation of VAT and basic rights of exploitation of consumer. The DED will conduct inspection campaigns in commercial centers to check irregularity or violation that might challenge consumers’ purchasing power. He also mentioned the government contact center on 800555.
further, he stated earlier 2017 DED team have monitored & collected prices from retailers and have developed the database in this regard to help inspectors to detect violations after the implementation of the VAT.
He also presented plan compromising of inspection campaigns during the first quarter of 2018 with which the inspectors will compare the price change of the commodities as compared to the previous year and after implementation of VAT.
DED observed that both business sector and consumer reservations regarding the imposing of the VAT are very much exaggerated as the impact will be very much low and limited due to the low VAT tax rate.
The VAT implementation at five percent rate is done after comprehensive study and market research done by relevant department at ministries and federal entities.
Moral of the study is that extensive research and studies confirmed that there would be the minor increase in the cost of living.
Economy experts have decided that expected inflation in the UAE will marginally up as the tax rate is one of the lowest in the world.