We've been talking about it for months and now a new year brings a new era: value added tax has become part of our daily lives. Over the past week, our reporters have watched residents stock up on goods and essentials in an effort to avoid higher prices. We've spoken to shopkeepers and business owners as they prepare for the new tax. We've looked at fiscal psychology and how it affects consumer thinking. We've detailed the impact the tax may have on some of the essentials of our daily lives, like petrol, which will increase in price by four per cent this month once fluctuations in the commodity price and the uplift for VAT have been taken into account. We've also tracked how the introduction of such regulations have changed the economies of other countries. In the UK, for instance, VAT raises more revenue for the government than any other indirect tax. In the last tax year, £124 billion in 2016-17 was collected in Britain. It is estimated that Dh12 billion will be raised through VAT on these shores in its first year.
Until now though, the fear of the unknown has chipped away at the collective conscience of the nation as residents and citizens have fretted about how much their lives will be impacted. The suspicion has been quite a lot even if no one could be sure. Thankfully, among other things, today will bring certainty.
What else will it bring? The new tax will require businesses to have a more rigorous view of their accounts and budgeting. It will give government a clearer perspective on the drivers of the economy and it is regarded by the International Monetary Fund as a necessary step for any economy to take. To certainty then, we should add transformation. At the same time, we shouldn't overstate the shift. As a government minister reminded the FNC last month, the tax will have a relatively minor impact on investors and consumers. This is then a new chapter in the rapid evolution of this country, one that this newspaper will track with great interest.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
More from Aya Iskandarani
