Energy-rich Gulf states say goodbye to their tax-free reputation

Dubai

HARD-HIT by a drop in oil income, energy-rich Gulf states will next year introduce value-added tax (VAT) to a region long known for being tax-free.

Some have hailed introducing VAT as the start of "exciting, dramatic" changes in the region, but the measure is also expected to push prices up for all residents including citizens and low-income workers.