VAT

Qatar Weighs Value-Added Tax Proposal

  • Arab Law

Qatar is taking a closer look at the possibility of introducing value-added tax (VAT) along with other GCC states, suggests a key planning document.

The idea is to take up the long-term challenge of broadening the revenue base and reduce the non-hydrocarbon deficit (which is the overall surplus excluding hydrocarbon revenues).

Backed by a large increase in hydrocarbon revenues, Qatar is expected to post huge surpluses in 2011 as well as this year, raising the share of hydrocarbon income in the total state revenue.