ABU DHABI // A tax on remittances to overseas countries has been dismissed as neither feasible nor advisable.
Hamad Buamim, chief executive of Dubai Chamber of Commerce and a member of the UAE Central Bank board, said he he had heard that the levy was being considered by the Dubai government.
But imposing a tax solely in Dubai would be pointless, since expatriates would simply transfer money home from other emirates, said Ali Al Nuaimi, a Federal National Council member for Ajman and a former bank chief.
At the federal level, taxation could not be imposed without a law passing through the Cabinet and the FNC and approved by the President, Sheikh Khalifa, and no such law is being considered.
“At the local level, they cannot control it,” Mr Al Nuaimi said. “A person can go to Sharjah and send money. If it is at the federal level, it will take a long time. Nothing official has been said to us, maybe the government is discussing this internally, but no information has come out. It is just talk for now.”
The suggestion was also dismissed by Yousef Al Neaimi, chairman of Ras Al Khaimah Chamber of Commerce and a board member of RAK Bank.
“The country has a free economy,” Mr Al Neaimi said. “Any person who works in the country, employee or owners, when they first came they came knowing it was a free economy without taxation. So I do not think this idea would be welcomed.”
He said imposing a tax on remittances would be an indirect way of imposing an income tax.
“That means we have introduced taxation in the country,” he said, and the UAE was not ready for such a step.
“We still need capital and investors and the people working here in the country – they are partners.”
Bloomberg News reported last week that three bankers heard about the proposal after receiving a circular from the Ministry of Finance. The ministry had asked for their views.
Financial experts have repeatedly advised expatriates to keep their money outside the country in case they encounter difficulties here, such as losing their job.
Richard Taylor of UKTaxDubai.com and a chartered financial planner with PIC Middle East said last month such problems could lead to accounts being frozen.
Others send money to their home countries to support family members.
Jocelyn, from Dubai Maids, said a large number of their maids did just that.
“This is a bad idea, it would affect a lot of maids,” she said.
If such tax were to be imposed, she said many would be forced to send smaller amounts home.
A marketing specialist in Abu Dhabi, said he came to the UAE for work so that he could support his family in Egypt. “I am sure people will find ways around it, like send money home with friends, or travel to Oman and transfer money,” he said.
“Not everyone has a big salary and expats here usually have a home outside the country and a family they need to support.”
osalem@thenational.ae
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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Types of policy
Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.
Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.
Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.
Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.
BRIEF SCORES
England 353 and 313-8 dec
(B Stokes 112, A Cook 88; M Morkel 3-70, K Rabada 3-85)
(J Bairstow 63, T Westley 59, J Root 50; K Maharaj 3-50)
South Africa 175 and 252
(T Bavuma 52; T Roland-Jones 5-57, J Anderson 3-25)
(D Elgar 136; M Ali 4-45, T Roland-Jones 3-72)
Result: England won by 239 runs
England lead four-match series 2-1
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BACK%20TO%20ALEXANDRIA
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CHATGPT%20ENTERPRISE%20FEATURES
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Killing of Qassem Suleimani
JERSEY INFO
Red Jersey
General Classification: worn daily, starting from Stage 2, by the leader of the General Classification by time.
Green Jersey
Points Classification: worn daily, starting from Stage 2, by the fastest sprinter, who has obtained the best positions in each stage and intermediate sprints.
White Jersey
Young Rider Classification: worn daily, starting from Stage 2, by the best young rider born after January 1, 1995 in the overall classification by time (U25).
Black Jersey
Intermediate Sprint Classification: worn daily, starting from Stage 2, by the rider who has gained the most Intermediate Sprint Points.
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
THE BIO
Favourite author - Paulo Coelho
Favourite holiday destination - Cuba
New York Times or Jordan Times? NYT is a school and JT was my practice field
Role model - My Grandfather
Dream interviewee - Che Guevara
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
Scorebox
Dubai Sports City Eagles 7 Bahrain 88
Eagles
Try: Penalty
Bahrain
Tries: Gibson 2, Morete 2, Bishop 2, Bell 2, Behan, Fameitau, Sanson, Roberts, Bennett, Radley
Cons: Radley 4, Whittingham 5
UAE currency: the story behind the money in your pockets
