Undersecretary of the Ministry of Finance: The tax contributes 11 billion dirhams annually to total federal revenues

2024/12/20 3:52:18 PM

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Dubai, December 20 / WAM / His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, confirmed that the tax revenues emanating from indirect taxes applied in the UAE contribute between 10 and 11 billion dirhams annually to the total federal revenues, while the federal budget amounts to about 65 billion dirhams. Tax revenues constitute a large proportion of it.

Speaking to the Emirates News Agency, WAM, on the sidelines of the second forum of the Federal Tax Authority’s strategic partners, which was held yesterday, Thursday, Al Khouri explained that these tax revenues are a vital element in supporting economic development and contribute to strengthening the federal government’s financial resources, and also reflect the strength of the country’s tax policies. In line with the state’s vision to achieve economic diversification and financial sustainability.
He stressed the importance of the role of the tax system adopted by the state over the past years in achieving sustainable economic diversification, noting that it today represents one of the basic pillars of enhancing government revenues and supporting the process of economic development, in addition to being in line with global best practices.
He noted that the Federal Tax Authority is today considered among the best tax authorities in the world thanks to its adoption of simplified and smooth procedures by automating tax transactions, from registration processes to tax collection.
He said that these developments come within the framework of the Authority’s keenness to facilitate operations and ensure the highest levels of efficiency in order to achieve sustainability in the public service delivery system and support the aspirations of strategic partners.
He added that this financial performance enhances the government’s ability to implement vital development projects in the long term and achieve its strategic goals, including developing infrastructure, supporting innovation, and enhancing public services provided to citizens and residents.
Regarding financial issuances, Al-Khouri indicated that the Ministry of Finance continues to issue regular debt instruments in UAE dirhams in coordination with the Central Bank.