UAE, KSA property market to get 'minimal' impact from VAT| MENAFN.COM

Saturday, 25 June 2022 01:42 GMT

UAE, KSA property market to get 'minimal' impact from VAT


(MENAFN) Property consultancy JLL has confirmed the UAE and Saudi Arabia's value-added tax (VAT) implementation to have a 'minimal' effect on real estate market.

"Fundamentally, we do not see VAT as being a market mover, with a significant impact really only on the retail sector as they take a hit on reduced consumer spending," JLL MENA's chief financial officer Andrew Hatherly explained.

He added "they will also have to absorb some of the 5 percent of VAT into their margins to avoid having to pass on too much of their costs to consumers."

JLL also noted that VAT impact on consumer price inflation is expected to be settled at about 2%.

MENAFN0702201800450000ID1096440174


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.