GCC states are weighing the prospects of imposing sales tax after abolishing joint customs tariff, Al-Eqtisadiah business daily reported yesterday quoting customs sources.
The sources said finance ministers of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain will discuss the topic at their meeting in Jeddah today.
The proposal, presented by the UAE and supported by Saudi Arabia, is based on the experience of the European Union and still in the beginning stage.
The sources expected that the measure could be implemented by 2007 if approved by all member states and hoped that allocations for conducting a study on the issue would be made in the next GCC budget.
Once implemented it would start with imposing sales tax on products such as cigarettes and luxury cars as well as alcoholic drinks, which are sold in some GCC states.
