Published in AlArabiya
The Gulf Cooperation Council (GCC) countries currently have a single market with a common external tariff of five percent. The introduction of a value-added tax (VAT) in Bahrain, Saudi Arabia, and the UAE under the GCC framework significantly expands the fiscal flexibility enjoyed by the governments. As a result, the Gulf countries should work toward eliminating customs taxes, switching exclusively to VAT. The primary benefit will be in opening markets for the Gulf countries’ new non-oil exports as they implement their economic visions.
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