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willie v
Lv 5
willie v asked in TravelAfrica & Middle EastUnited Arab Emirates · 1 decade ago

Are we hiddenly taxed in the UAE?

I'm planning to buy some electronic stuffs and checked out some high ends in the market and surprised that they are almost the same price (if not higher to some %) compared to those in th US, Europe and Singapore market. Prices of basic needs (milk, detergents, foods, etc) are comparable as well. Been to some local restaurants (Dubai & Abu Dhabi) and my local bills are almost the same as my taxed bills from the US... worst is Abu Dhabi for having tourism tax even though I live in Abu Dhabi and the UAE long before those hotels were erected....

If the costs of goods here in the UAE is comparable to taxed goods in some other places in the world then what could be it if not for tax?

Update:

Interesting answer Mahesh... bottomline is you believe and you have accepted the fact that tax really do exist in the UAE and they are not hidden.Then why we don't see it in our everyday transactions? Why Profit and Loss statements of establishments, companies, entities do not show Profit or Loss after Tax? Why every net income statements in the UAE do even mention the word Tax?

Let's go to the most common - where is the word Value Added Tax (VAT) in official receipts since you've just said tradeable items are basically the same in price everywhere except if they are subsidized?

5 Answers

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  • Twizzle
    Lv 5
    1 decade ago
    Favorite Answer

    Things are priced high in UAE because they can charge that much and get away with it.

    Plus there is a larger wealthy population than in many countries and they don't worry about, or question the prices.

    Everyone is trying to make the big bucks in the country...and they will rip you off in order to make it. Just like the service charges that finally were made illegal in restaurants. Most of the service charges were actually going to the profit of the business instead of to the waiters and waitresses.

  • WOrD
    Lv 7
    1 decade ago

    then you should have notice there was a difference between consumer goods (specially food & cooking gas) between Dubai & Abu Dhabi , where the 2nd is cheaper. And even Qatar & Saudi cheaper than Abu Dhabi. We did compare the prices of milk (NIDO milk powder canister) , it was selling 45 in Dubai and 15 in Qatar , and for Almarai fresh milk, it was 10 in Dubai (2 Litre from their Abu Dhabi farm) and 6 in Saudi Arabia (Saudi farm) for the same brand. Unbelievable.

    I suppose the real tax is the higher wages and higher rents in Dubai that is why they have to make up the difference from the price of non-durable goods. For Durable goods (Electronics, Fridges, Washers, TVs etc) Dubai comes ahead as being the cheapest "most" of the time.

    I still think they are taking us for a ride though. The difference in price as compared to US/Europe/ Asia for the same goods is more than just any costs for changing the power plugs/ ac adapter (tech related features to suit the market), and more than the the cost of any shipping & customs the importer had to pay. Specially given some of them buys at large quantities and gets the stuff dirt cheap from US or Asia.

    I don't know if it is merchant greed or government regulations that causes the increase, but no doubt the expense of real estate and wages account for much of that.

  • gamar_xx
    Lv 4
    1 decade ago

    I know what you mean, I feel the same. Even worse, I feel this taxes somehow getting higher since recession started. Every day I have less money compared to last month. Anyone can tell me is cheap? Taxes are hidden and they exist. No further comments

  • Mahesh
    Lv 4
    1 decade ago

    Tradeable goods are pretty much the same in all developed countries, unless there is a specific subsidy, like Petrol.

    Non-tradeables vary. These are things like a cup of coffee or a haircut.

    We are taxed and this is not hidden. We are also FINED.

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  • Anonymous
    1 decade ago

    It is more like Mark up instead of Tax.

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