The GCC has agreed to introduce VAT following costly military campaigns and a drop in global oil prices
Six Gulf states have said they will tax their citizens for the first time in a radical policy shift.
- Saudi Arabia
- United Arab Emirates
Oil prices have dropped near $40 a barrel this week, the lowest since the financial crisis.
Taxation is considered an alternative source of income for Gulf states hoping to move their economies and populations away from a dependence on oil and gas.
The council announced a target to introduce VAT over the next three years. Healthcare, education, social services and 94 food items will be excluded.
To limit smuggling and competetiveness, the countries aim to introduce the tax at the same time