uae workers buy in bulk to beat vat as small purchases prove too costly
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

UAE workers buy in bulk to beat VAT as small purchases prove too costly

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice UAE workers buy in bulk to beat VAT as small purchases prove too costly

Workers said they will start bulk buying groceries to avoid paying more on individual low-cost items that are rounded up due to a lack of change.
Dubai - Emirates Voice

Workers are feeling the pinch when they sip their daily cup of chai and are quickly learning that bulk and weekly grocery shopping will offset the VAT charge instead of purchasing small items from shops.

Since Value Added Tax was introduced to the UAE on January 1, many supermarkets have been rounding up prices due to a lack of small change.

Most residents were not aware that shops can now round up change of 5 and 10 fils to 25, 50 or 75 fils as per a recent clarification from the Department of Economic Development in Abu Dhabi.

When applying the 5 per cent VAT charge on a low cost item including food and beverages, the department said that should the bill amount to Dh10.05 after VAT, the customer can be charged Dh10.25 and if the bill is Dh10.35, the charge can be Dh10.50. The round up cannot exceed 20 fils however.

And while the change may seem meagre, the cost adds up and workers have suggested shops should show goodwill and waive 5 or 10 fils payable due to VAT instead of asking the customer to cough up more money.

“It’s not the overall VAT charge that is making a difference because that is a rule so that is okay. But it is the small things that we feel,” said Ahmed Ali, a factory worker in Sharjah.

“The stores say they have no change but they still don’t let go of the money. Instead they charge us more than the VAT amount and they make a profit,” he said.“It has not even been one week since the tax so it’s very early to say how it will affect us. The main worry for us is that everything will be a little more expensive but our salary will not increase. For us it’s very hard earned money, some people who make a lot of money may not bother about the change,” Mr Ali said.

Mr Ali and the three other men he shares a room with in a workers’ accommodation pay Dh6.50 in VAT on a Dh130 weekly purchase of groceries for the group.

But he said it hurts to pay 25 fils more every time he purchases a glass of steaming hot tea. Post-VAT, as he does not have the 5 fils change for a Dh1 cup of tea, the tea stall rings it up to Dh1.25.

“It’s better for us to buy all together. If I even buy a small bottle of milk daily, it will be more expensive. When it’s 5 per cent spread for all of us we don’t feel it,” he said.

“But just because I don’t have 5 fils change, why should I be charged 20 fils extra? When we go to work we have realised if we buy four or five glasses of tea together then 25 fils among all of us is okay.”

The men are understanding that it is more beneficial to buy non-perishables and share their provisions.

Khubiz or Arabic flat bread costs Dh2.50 and will cost 25 fils extra daily when rounded up so the men have decided to bulk purchase 25kg of rice instead.

“Instead of charging us extra, the stores should let the change go. We are regular people and they are making a profit,” Mr Ali said.Workers employed in construction and transport sectors or at beauty salons earn between Dh1,000 and 2,500 a month.

Many workers send a large portion of their earnings to family back home and live off as little as Dh400-600 a month. Spending Dh1 or more everyday on low cost items once charges are rounded up will prove costly to them.

Workers said they would have to curb on expenditure on snacks sometimes bought from shops since it would be cheaper to cook together at their accommodation.

“I will have to be more in control of my spending now. Five per cent in not too much but if I have two or five cups of tea a day then I will pay 50fils or Dh1.25 more every day. That is just too expensive for me,” said Pradeep Kumar, a driver in Dubai.

“We will need to hold on to our money and save.”

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae workers buy in bulk to beat vat as small purchases prove too costly uae workers buy in bulk to beat vat as small purchases prove too costly

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae workers buy in bulk to beat vat as small purchases prove too costly uae workers buy in bulk to beat vat as small purchases prove too costly

 



GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 05:04 2024 Tuesday ,06 February

Skincare PR Performance Full Year 2017

GMT 19:57 2018 Tuesday ,23 January

Farm-fresh from Kerala to the UAE, in just one day

GMT 10:08 2018 Wednesday ,24 January

Microsoft to open 4 data centres

GMT 06:15 2018 Tuesday ,23 January

Volkswagen clinches record sales

GMT 10:18 2018 Thursday ,30 August

Iran incapable of closing Hormuz, Bab Al Mandeb

GMT 19:46 2017 Sunday ,12 March

Beyonce throws office party for her company

GMT 12:12 2017 Monday ,27 November

ARIES (March21st-April20th)

GMT 18:21 2015 Wednesday ,14 January

Gigi Hadid named the new face of Maybelline

GMT 11:48 2017 Monday ,31 July

Qatar has to change stand: Quartet

GMT 13:38 2016 Thursday ,14 July

'Passionate' Pacquiao eyes comeback

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 20:36 2011 Tuesday ,27 September

Paris fashion week opens in black and white

GMT 13:18 2017 Wednesday ,13 September

Iraqi Foreign Minister warns Arab counterparts of Kurdistan

GMT 17:42 2013 Monday ,25 February

Andy Murray buys luxury Scottish hotel

GMT 12:25 2014 Monday ,28 April

Third party mobile payment thrives in China

GMT 08:22 2017 Wednesday ,14 June

Khalifa gets Ugandan President's letter

GMT 17:26 2013 Friday ,06 December

\'Male pill\' may be possible within 10 years
Emiratesvoice, emirates voice
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice