Six countries will start taxing people for the first time

Six Gulf states have said they will tax their citizens for the first
time in a radical policy shift.
The Gulf Cooperation Council (GCC) - a loose fedration of Saudi
Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates -
has agreed to introduce VAT following costly military campaigns and a
drop in global oil prices.
Saudi Arabia has withdrawn tens of billions of dollars from global
investment funds in an attempt to reduce its budget deficit, The
Times reports.
Despite this, it has pursued an aggressive foreign policy, supporting
anti-government troops in Syria and spearheading an eight-month
military campaignagainst Iran-backed rebels in Yemen.

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.