70% of VAT revenues will be redistributed to the emirates budgets.
The Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Ibn Rashid Al Maktoum, chaired the first cabinet meeting in the new year and emphasized the importance of declaring 2018 the Year of Zayed.
His Highness confirmed that "the achievements of the UAE today are the fruits of the vision of our father and leader, the founder of the UAE." He added that "the decree of the President of His Highness Sheikh Khalifa ibn Zayd Al Nahyan on the dedication of the year to the founding father is an opportunity to translate the values into further achievements for the benefit of our people and country." The Cabinet reviewed the changes in the distribution of value added tax revenues in the UAE and adopted a strategy for the transfer of revenue from value added tax to local governments. Tax revenues will be used to support the development of projects to meet the needs of the population.
"We decided to distribute income from value added tax in the UAE to local authorities. 70 percent of such income will be directed to the development of local administration services and broader support for citizens," Sheikh Mohammed said.
"The government will inform citizens about the progress of such changes and control the market, preventing price increases. The authorities will continue to advise citizens, primarily serving their interests," the vice president said.
The Cabinet also adopted the UAE 2036 water safety strategy, aimed at ensuring the availability of sufficient quantity of water and its quality in accordance with international standards in normal and emergency conditions.
