The currency exchange houses in the country confirmed that they would pass on the VAT charges on the remittance fee to the consumers from January 1, 2018. Indian workers continued to be top remitters followed by Pakistanis, Filipinos, Egyptians and the British.
According to industry executives, the rise in the fee due to VAT will not affect remittances from the country. For remittances, with an amount up to Dh1,000, we charge Dh16 and for the amount over Dh1,000, we charge Dh22 on average.
From January 1, 2018, the UAE government will impose 5 per cent VAT on certain goods and services under the GCC agreement. Implemented across more than 150 countries worldwide, the UAE’s 5 percent VAT is among the lowest in the world.
Adeeb Ahamed, secretary, FERG, said VAT is definitely a good thing but is it the right time is the question being asked by the business community. According to the UAE Central Bank figures, the total value of remittances by foreign workers in the UAE reached Dh78 billion during the first half of 2017.
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