Riyadh – Mubasher: Federation of GCC Chamber (FGCCC) called on applying the value added tax (VAT) gradually.
The federation pinpointed that the private sector and citizens have to know the details and mechanism of the tax application and the sectors in which the tax will be applied adding to its effect on the business atmosphere.
GCC private sector participates by about 33-35% of gross domestic product (GDP), which means more than $500 billion per year, FGCCC added.
In a workshop held in Bahrain's Chamber of Commerce, the federation noted that the tax should not be applied on the imported goods as it will be considered as additional customs duties, but it should be imposed on the actual sales.
Abdul Rahman Al-Otaishan, first vice president of FGCCC, expected that the application of the VAT would generate big revenues for the GCC, which will be an addition to what is being generated already of governmental non-oil revenues of about $40 billion.
