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UAE to tax water and electricity at 5 per cent

Both water and electricity will be taxed at 5 per cent from January 1, 2018, according to a set of draft executive regulations.

According to the document, water and electricity will be treated as supplied goods, and therefore subject to a 5 per cent value-added tax (VAT).

This category of taxable goods are defined in the regulations as the “supply of water and all forms of energy including electricity and gas … whether used for lighting, or heating, or cooling, or air-conditioning or any other purposes”.