Saudi, UAE VAT may adversely affect majority of Indian expats

Agencies
January 3, 2018

Hyderabad, Jan 3: Introduction of Value Added Tax (VAT) by Saudi Arabia and the United Arab Emirates (UAE) would adversely affect a majority of Indians working there and reduce their remittances, said a former diplomat.

"I would say 70 to 80% of Indian community there will be adversely affected," said Talmiz Ahmad, the former Indian Ambassador to Saudi Arabia, Oman and the UAE.

The size of the Indian community in Saudi Arabia and the UAE is three million and 2.8 million, respectively, he said.

Of them, the lower-middle-class and middle-class sections will get affected the most as they are already feeling the pressure on account of high cost of living, Ahmad said.

"This is on account of rent, medical expenses, school fees, transport and high cost of essential items. Therefore, cost of living has gone up quite significantly in the last two years," he said.

The adverse impact on the labour community which is provided accommodation by the employer and blue-collar workers who are "protected" by their companies would be comparatively less, he said.

"As it is, the cost of living there (Saudi Arabia and the UAE) is quite high," he said. "Obviously, the low paid Indian expatriates will be adversely affected."

"I have a feeling, as it is because of the fall in oil prices and reduction in employment, the remittances have already reduced in the last two or three years," Ahmad said.

"The remittances from the Gulf have already come down; earlier it was about $35 billion; I think it would have come down to USD 30 billion. Yes, there will be a further small reduction (following the introduction of VAT) because this income will no longer be available to the person to remit," Ahmad said.

Saudi Arabia and the UAE introduced VAT from January 1, a first for the Gulf. Reports said the 5% sales tax applies to most goods and services.

Comments

Jacob
 - 
Wednesday, 3 Jan 2018

OWN MOTHERLAND INDIA... nver before 70 yers we have had such suffering...due to demonetization and GST together with DIGITAL INDIA is making life MOST SUFFERED..Trust and hope our PM will withdraw something to BENEFIT THE POOR

Ibrahim
 - 
Wednesday, 3 Jan 2018

King wont trouble Indians. He is so generous

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News Network
July 18,2020

Bengaluru, Jul 18: Vendors in Bengaluru are finding it hard to earn a livelihood as the state government has allowed the sale of products only for a few hours each day. The lockdown imposed by the Karnataka government on July 14 will continue till July 22.

Speaking to ANI, Vanajakshi, a local vendor said, "We took loans from banks and small financiers to run our business. But we are finding it tough to pay back as our livelihoods have been hit."
"Because of the lockdown, no one comes to buy and markets remain vacant. There was a time when the Gandhi Nagar market was filled with customers, but now it looks like a vacant playground," she added.

Mythri, an advocate, said, "Look at the conditions of vendors. It's precarious. They do not have any business at all. Even now they have been allowed to sell products till 12 noon, which is not sufficient. It's time for the government to step in and provide assistance. If the Central government can reduce corporate taxes, why can't it help them? At least it will help them pass off these difficult times. "

"They are earning through daily wages. The government imposed lockdown suddenly. Where will they go? The city market in Bengaluru is famous. At least 8,000 people come from slum areas. People here are poor. The lockdown was done suddenly and led to problems for these people," said Congress MLA Zamil Ahmed Khan.

Referring to a recent meeting with the chief minister BS Yediyurappa, he said, "During the meeting called by the CM, I suggested that food kits must be arranged for vendors. The CM said the government is providing rice and wheat but that's not enough."

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News Network
March 26,2020

Mau/ Kalaburagi, Mar 26: Uttar Pradesh Police on Wednesday asked lockdown violators in Mau to do push-ups and squats as a punishment.
In Karnataka's Kalaburagi, police personnel punished the violators of the lockdown.
In his address to the nation on Tuesday, Prime Minister Narendra Modi announced a 21-day lockdown in the entire country effective from midnight to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.
According to the Health Ministry, the total number of positive COVID-19 cases in India reached 606, including 43 foreign nationals.

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News Network
February 27,2020

Washington, Feb 27: President Donald Trump has said that the US' relationship with India is "extraordinary" right now and a lot of progress was made in bilateral ties during his maiden official visit to the country where America will be doing a lot of business.

Talking to reporters, after his return from India on Wednesday, Trump said, "He (Prime Minister Narendra Modi) is a great gentleman, a great leader. It's an incredible country."

President Trump visited India from February 24 to 25. He was accompanied by first lady Melania Trump, daughter Ivanka Trump, son-in-law Jared Kushner and the top brass of his administration, including national security advisor Robert O'Brien.

They visited Ahmedabad, Agra and New Delhi before leaving for Washington on Tuesday.

During his stay, he addressed a massive rally in Ahmedabad, visited Agra and held official meetings in New Delhi.

The US President was feted at the world's largest cricket stadium in the "Namaste Trump" event in Ahmedabad and was cheered by tens of thousands of people.

"We were treated very, very well and we really enjoyed it. A lot of tremendous progress was made in terms of relationship - our relationship with India is extraordinary right now," he said.

"We are going to be doing a lot of business with India, they are sending billions and billions of dollars now to the United States," Trump said in response to a question.

In a tweet, his daughter Ivanka said that, Trump announced that US international development finance corporation "will establish a permanent presence in India to strengthen our economic ties, improve development plus further women's economic empowerment through WGDP (Women's Global Development and Prosperity Initiative)!"

On her arrival from India, she thanked PM Modi for "your warm hospitality as we visited your beautiful country and celebrated the strength, spirit and unity of the US and India!"

"Throughout our visit we saw monumental achievements of human creativity and proof of the infinite capacity of the human heart!" she said.

The first lady tweeted two pictures of her with Trump facing the Taj Mahal in Agra.

"One of the Seven Wonders of the World, the breathtaking Taj Mahal!" she said.

President Trump "reaffirmed the strong strategic partnership, vibrant economic ties and expanding security relationship between our two countries. Wonderful trip, but glad to be home! Thank you India!" said White House press secretary Stephanie Grisham.

During the visit, India and the US on Tuesday finalised defence deals worth $3 billion under which 30 military helicopters will be procured from two American defence majors for Indian armed forces.

The deals will include procurement of 24 MH-60 Romeo helicopters by India from the US at a cost of $2.6 billion. Another contract to acquire six AH-64E Apache helicopters for $800 million from the US is also on the table.

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