Abu Dhabi, May 14 / WAM / His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, confirmed that the total revenues collected from value-added tax and excise tax at the state level (federal and local) amounted to 173.6 billion dirhams since their implementation until the end of the fiscal year 2023.
Al-Khouri said, in an interview with the Emirates News Agency, WAM, that the total revenues collected from the value-added tax at the state level (federal and local) amounted to 159.57 billion dirhams since its implementation until the end of last year, while the value of revenues at the federal government level only amounted to about 47.87 billion dirhams. One billion dirhams during the same period.
He added that the total revenues collected from the excise tax at the state level (federal and local) amounted to 14.07 billion dirhams since its implementation until the end of the fiscal year 2023, while the total revenues collected at the federal government level during the same period amounted to about 5.2 billion dirhams.
He stressed that the financial sector in the UAE has succeeded in achieving exceptional performance over the past years, noting that the UAE has achieved first place globally in the government budget balance index and gross domestic product in the 2023 Prosperity Index report.
Al-Khouri said that the Ministry of Finance contributed effectively to the country’s obtaining first place in the world in the “National Economic Stability” index, according to the latest reports of the World Economic Forum, and achieving progress in the field of financial sustainability of the country by recording a 3.2% increase in government revenues during the ten years. The past, and the creation of new sources of income, such as the tax system, where the contribution of taxes to income reached 78% for the year 2021, and 53% for the year 2022.
He pointed out that with regard to the preparation and management of the government budget and its approval by the Union General Budget Committee, it was chosen by the Organization for Economic Cooperation and Development as a best practice within the framework of global budget management, as it contributed to increasing the annual budget for the year 2024, which will contribute to the implementation of a number of unique projects. And qualitative at the state level, such as contributing to the capital of the passenger railway project, which is joint between Oman Company as a representative of the Sultanate of Oman and Etihad Rail Company as a representative of the UAE, implementing the national strategy to combat money laundering and terrorist financing, implementing the digital transformation project for the government services system, and supporting the UAE Committee. United Sports and the country’s sports federations, implementing the requirements of the National Strategy Document for the Digital Economy, forming the Emirates Council for the Digital Economy, and others.
In response to a question about the ministry’s plans to issue new bonds and sukuks in 2024; His Excellency Younis Haji Al Khouri, Undersecretary of the Ministry of Finance, said that according to the initial plan for the current year, Islamic treasury bonds worth 5 billion dirhams were issued in the first quarter of 2024.
He explained that, in cooperation with the Islamic Development Bank Group and in partnership with the Central Bank of the Emirates, the Ministry of Finance supervised the process of issuing Islamic Treasury Sukuk (T-Sukuk) denominated in the UAE dirham with a standard auction size of up to 1.1 billion dirhams, and applying the best international practices in structuring these Sukuk. It also followed the process of listing the Islamic Development Bank Group’s sukuks on the Nasdaq market in the Emirate of Dubai, which amounted to 63.1 billion dirhams, making it the third largest center for listing sukuks globally, which contributed to achieving third place globally in the “Global Islamic Economy (GIEI)” index. And enhancing the country’s position in the volume of assets managed in the UAE market.
Regarding the number of agreements concluded by the UAE to avoid double taxation on income, Al-Khouri indicated that the country has signed 145 agreements to avoid double taxation on income, indicating that there are other agreements currently under negotiation and a number of them are expected to be finalized and signed during the current year.
He noted that the strategic objectives of the Ministry of Finance during the current year are based on enabling distinguished financial performance in the federal government, ensuring financial sustainability for a comprehensive future, and enhancing national financial flexibility.
He stressed that the general budget of the Union for the fiscal year 2024 is in line with the national visions of the wise leadership and the strategic directions of the UAE government in consolidating the foundations of the knowledge economy, achieving the requirements of sustainable and comprehensive development, providing advanced infrastructure, the best economic opportunities, and a stable business environment to attract investments, and implementing a health system in accordance with best practices and standards. Global education, in addition to ensuring the quality of comprehensive and sustainable education, and enhancing the role of technology and innovation in building the future generation according to the best educational foundations and modern curricula, as the trilogy of education, health and social welfare is an essential pillar for the development of society.
He pointed out that the total estimated expenditures for the general budget of the Union for the fiscal year 2024 amount to 64 billion dirhams, and the total expected revenues are 65.7 billion dirhams, with an expected surplus of about 1.7 billion dirhams, while estimates of the federal budget cycle for the years 2024-2026 amounted to about 192 billion dirhams.