Abu Dhabi: Local governments will get 70 per cent of the revenues of the value added tax (VAT), implemented as of January 1, said His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on Sunday.
The remaining 30 per cent of the revenues will go to the federal budget.
“Distribution of the VAT revenues aims to achieve better local services, greater community development and broader support for our citizens,” said Shaikh Mohammad while chairing a Cabinet meeting held at the Presidential Palace.
Lieutenant General Shaikh Saif Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Interior, and Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, were present.
“Our goal is to create a bigger push for development projects and services provided to Emiratis. The government will be transparent on the nature of these projects and firm when it comes to controlling the markets to stop price hikes. The government will continue to consult with Emiratis in all matters that serve their interests and ensure a decent life for them,” Shaikh Mohammad added.
Shaikh Mohammad affirmed that “the achievements of the UAE today are the fruits of the vision of our father and the leader, the founder of the UAE”. He added that “President His Highness Shaikh Khalifa Bin Zayed Al Nahyan’s directives to dedicate this year to our founding father is an opportunity for us to translate the values that have been instilled in us into further achievements that serve our people and our country.”
The Cabinet approved appointing the board of directors for the Federal Authority for Nuclear Regulation (FANR).
“The UAE is preparing to become the first Arab country to achieve the Arab dream of generating energy through nuclear reactors, and this will be accomplished with the operation of the first nuclear reactor in 2018,” said Shaikh Mohammad.
The Cabinet also adopted the "Manual on Measuring Productivity in the Federal Government", which explains the mechanism of performance and productivity in the federal government. It includes directives for all ministries and government entities to understand and measure the productivity of the governmental sector.
In organisational affairs, the Cabinet approved the restructuring of the Judicial Coordination Council to achieve coordination among all judicial entities in the UAE, and to ensure the exchange of knowledge in the areas of judicial and legal affairs. The Cabinet also approved the estimated budget of the General Authority for Pensions and Social Insurance for the fiscal year 2018.
Concerning international relations, the Cabinet agreed to upgrade the diplomatic representation office of the UAE in Bonn, Germany, to a General Consulate.
It also adopted and ratified a number of international conventions, including ratification of the Convention on Cultural Cooperation with Ukraine, an agreement with Switzerland on the exemption of a short-stay visa for holders of ordinary passports, and an agreement on reciprocal protection of investments with the Government of Moldova, as well as two conventions on the avoidance of double taxation and the prevention of fiscal evasion with regard to income taxes with both the Government of Moldova and the Government of Croatia.
