UAE consumers more accustomed to VAT
Lifestyle UAE

Residents in the UAE are getting more accustomed to VAT and remains upbeat about the state of their finances

UAE residents continue to be confident about the state of their finances, while fewer reports are seeing any impact from the introduction of value-added tax (VAT) on goods and services since last year, according to a new survey released on Tuesday.

The Consumer Confidence Tracker Q1 2019 from financial website yallacompare surveyed more than 1,000 UAE residents on the state of their finances and attitudes towards work.

The results show that 21 percent of respondents feel more confident about their finances than they did 12 months ago, compared to 22 percent in Q4 last year and 14 percent in Q3 2018.

VAT was introduced to the UAE at the start of 2018, but the concerns around its impact appear to be diminishing.

Those who said they were struggling with VAT dropped to 14.8 percent in Q1 2019, from 16.1 percent in Q4 2018 and 26.9 percent in Q3 2018.

“Consumers are now accustomed to VAT and have factored it into their household budgets. As a result, confidence levels are now back to, or exceeding, where they were at the start of 2018 and we expect to see them stay there for the foreseeable future.”

Despite the yallacompare results, the rising cost of living is the top concern among young people, according to the results of the Arab Youth Survey released last week.

SOURCE

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