Business activities are considered as backbone of Dubai’s economy. Thousands of local and international companies have setup their businesses in Dubai that provide jobs to millions from various parts of the world. Every year, several more incorporate in the city to get maximum benefits of business opportunities available here. The government of Dubai is completely aware about the vitality of this sector and it takes necessary measures from time to time in order to ensure progress and growth of companies and to reduce their problems.
Recently, several companies are facing issues after implementation of value added tax (VAT). In order to minimize the problems of such companies, Dubai has taken few steps like exemption of companies from fines. In a latest such step, Dubai’s Department of Economic Development (DED) has announced few measures that would allow companies in trouble to continue their business activities on long-term bases.
According to details, these initiatives were approved in a meeting chaired by Dubai’s crown prince & chairman of Dubai Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. These steps include: reducing DM’s (Dubai Municipality) fees from 5 to 2.5%, eliminating 19 fees related to aviation industry, giving 60 days’ grace period to real estate developers for late payment of property registration fees, freezing private school fee for 2018-19 and several others. These measures are taken to attract foreign direct investment in various sectors like aviation, real estate, education and others related to DM.
According to deputy CEO DM, Mohammed Al Shehhi, the new package will allow businesses to pay their license renewal fees and different fines within 12 months through easy installments. DED also elaborated that it will be applied on fines issued before 14th April 2018.
Business owners expressed their pleasure and relief on latest orders. They said that this decision is taken at the very right time as especially small businesses are suffering at the moment due to VAT and various fines. This will help these companies to survive in this difficult time.
These latest steps by Dubai government clearly indicates that the leadership is fully aware about issues of both big and small businesses and is ready to take important and bold steps whenever it is required to assist all types of businesses in Dubai. This will also encourage new businesses to enter the emirate due to satisfaction that they will not be left alone at the time of crisis.
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