The Association of Independent Economists, which is affiliated with the Istiklal Party, which participates in the government, has called for the adoption of a tax under the 2023 Finance Law on the profits of companies operating in regulated sectors.
In a memorandum issued by the association, the association stressed the need to make a solidarity contribution by further deducting the profits of companies operating in regulated sectors, especially in the telecommunications, fuel, cement and minerals sectors, in addition to the financial sectors. .
The Association indicated that the preparation of the 2023 Finance Bill is taking place in a context marked by soaring prices, which calls for easing the burden on families, increasing the competitiveness of small and medium-sized enterprises, capitalizing on the many opportunities these changes present to the economy, and finding new sources of wealth and finance.
As a tax measure, the association has proposed revising the income tax scale in line with the main recommendations of the recent nationwide fee debate, raising the tax-free annual income cap from AED 30,000 to AED 36,000 and applying a top tax rate. with an annual income exceeding AED 240,000.
The Association of Independent Economists is also seeking to raise the professional expense deduction rate, increase deductible family expenses from AED 360 to AED 1,080 per person, and initiate a gradual reduction in the overall corporate tax rate to reach 25 percent for companies currently subject to the 31 percent price cap. .
The association’s proposals also include the unification of income tax rates by applying them to all major players, regardless of their field of activity, as well as the introduction of taxes on the activities of large electronic trading groups “GAFA”.
The Association of Independent Economists recommended adopting a more regionally oriented approach to investment, offering more innovative ways to create local jobs, and commissioning large territorial groups to implement and finance large projects that fall under their mandate.
