He said that the IMF which is not allowing any kind of subsidy has stepped up pressure on the government and to end the zero-rate
industry and withdraw energy package.
Bahrain is also applying a zero-rate
on basic food items, some construction services, education and healthcare services, local transport services and the oil and gas sector.
In the UAE, the supply of educational services and related goods and services for nurseries, preschool, school education, and higher educational institutions owned or funded by Federal or local Government is subject to VAT at the zero-rate
In the meantime, the BIR just released an advisory that applications for VAT zero-rate
are still being received and processed following existing guidelines and procedures.With all things considered, the fate of sales of goods to PEZA registered entities still requires clarification through subsequent issuance of detailed and exhaustive regulations.
More than a third of the 9,852 responding companies said the lifting of the zero-rate
floor was "too early," though about the same number deemed it "appropriate." Almost two-thirds of respondents said they still "do not feel the breakaway from deflation" in the Japanese economy.
The poll found 42.3 percent of some 10,000 corporate respondents said they are ready to tolerate the BOJ ending the zero-rate
policy by the end of 2006, a move that will induce hikes in a wide range of interest rates, including rates on bank loans for firms' capital outlays on factories and equipment.
It is the third month in a row for the IBJ to cut the key rate, which comes amid a decline in long-term rates following the Bank of Japan's decision March 19 to quantitatively ease its monetary credit to effectively reinstate its zero-rate
However, unlike the UAE and Saudi Arabia - which introduced VAT on January 1 this year - Bahrain will apply a zero-rate
on basic food items, construction of new buildings, education and healthcare services,local transport services and the oil and gas sector.
One of the arguments is that 'public transportation' only means transportation services provided by a government body such as the Roads and Transport Authority (RTA) for the public at large and thus, a bus will qualify for zero-rate
only when supplied to the RTA.
economy, some politicians are hoping the BOJ will reinstate the zero-rate
policy to stimulate the economy.
11 board meeting, the government opposed the removal of the zero-rate