A draft law that organises the regulation of taxes, including value-added tax, is expected to be passed this week by the Federal National Council.
"The draft law will organise taxes that the UAE Government is planning to introduce soon," explained Salem Al Shamsi, member from Ajman.
While the draft law does not include details about taxes themselves, it will address procedures required for tax collectors. Tax evasion and its penalties are also covered.
"As per the penal code, there will be fines and jail sentences. We cannot specify amounts now, because it has not been approved yet," said Mr Al Shamsi, who is the rapporteur of the FNC committee that revised the draft law.
The draft law consists of 53 articles and is aimed at finding stable sources of revenue for the federal government.
The GCC had agreed last year to implement a 5 per cent VAT. It is expected to be levied starting next year, with basic commodities and medicines to be exempt.
Federal Law No 13 was issued last year to establish a federal tax authority, which will be in charge of collecting taxes. This law will organise their work.
The draft law gives the authority the right to conduct tax audits, rights of the person being audited and methods for reporting violations and confidentiality issues.
A second draft law scheduled to be passed this week reorganises the Emirates Center for Strategic Studies and Research.
During the council’s sessions that will be held on Tuesday and Wednesday, members will also discuss reports issued by international organisations regarding the UAE.
Questions raised to ministers and government officials ahead of the session include a question from Dubai member Azza bin Suleiman to Hussain Al Hammadi, Minister of Education, on the reason behind raising private school fees.
The minister also received a question from Dubai member Hamad Al Rahoomi on Law No 19, which was issued last year, regarding nurseries at ministries and public departments.
Member Salem Al Shehhi, from Ras Al Khaimah, has asked about the Emiratisation of school bus supervisors.

Source: The National