KSA concerned by UAE’s ‘negative’ road tax plan

KSA concerned by UAE’s ‘negative’ road tax plan
Updated 29 May 2014

KSA concerned by UAE’s ‘negative’ road tax plan

KSA concerned by UAE’s ‘negative’ road tax plan

The Saudi Ministry of Transport is concerned about a “negative” plan by the United Arab Emirates (UAE) to impose a tax on all vehicles traveling into its territory.
The Minister of Transport Jabara Al-Suraiseri would have talks with the UAE National Transport Authority on June 11 about the plan, said Safar Abu Medani, the Saudi assistant undersecretary for road transport, here recently.
Abu Medani said the Saudi government has authorized the minister to have talks about the negative effects of the move with the UAE. Attempts would be made to resolve the issue through negotiations, he said.
The UAE authorities informed transport companies in December that it plans to tax all vehicles crossing its borders, including imposing a fee on every bus passenger.
The UAE wants transport companies to pay AED100 for every bus, including AED5 per seat. Cargo carriers would have to pay AED100 for each tanker and AED10 per ton.
“There are some issues that remain unclear and will not be clarified until the system is implemented,” Abu Medani said.
He said the minister decided to visit the UAE after studying the terms of the new tax system for three weeks.
Abu Medani said the ministry has not yet had a meeting with transport companies, but had noted the recommendations from the recent workshop held by the Federation of Gulf Cooperation Council Chambers of Commerce and the UAE transport authority.
“The Ministry of Transport is still considering the negative ramifications of the decision on Saudi carriers, particularly since they account for 60 to 70 percent of all carriers traveling across the border between the UAE and Saudi Arabia,” he said.
He said the Saudi ministry has not offered any counter proposal yet to the UAE plan, and that solutions would be determined during the talks.
“The UAE has not applied the tax yet. It was postponed until Saudi Arabia takes a decision on the matter,” he said.
Abu Medani said a tax by Saudi Arabia on UAE transport companies is not on the table but cannot be excluded.
He said the Gulf Cooperation Council has not discussed the issue because none of the member countries has made an official request to do so.