20 January 2014
Saudi authorities have informed National Transport Authority (NTA) of the United Arab Emirates (UAE) that the proposed tax on vehicles including transport trucks and passenger buses entering the Emirates would be an additional burden on the transport sector in the Kingdom.
Transport under-secretary Faisal Al Zabin, reacting cautiously to the development, told local media that the Kingdom had conveyed its view on the proposed tax to NTA chairman Nazim Bin Taher.
"We hope the UAE will reconsider its decision and look into all aspects of the taxation proposal," he said, adding that the Kingdom was not in a hurry to make any announcement on the proposed tax.
He, however, did not rule out the possibility of the Ministry of Transport imposing similar tax.
The fact that the UAE was considering such a measure even as the six-nation Gulf Cooperation Council (GCC) was pushing hard for greater cooperation in trade and manpower has taken many by surprise. The proposed tax would not only affect Saudi Arabia, but would also have an impact on the GCC nations as well as Jordan, Lebanon, Syria, Yemen and Turkey.
The proposed tax is one of several measures introduced by the UAE through NTA, which is the statutory authority for implementation of new land transport policies. The proposed road tax was to have been levied from September, 2013, but was put on hold, and was to be implemented from last week.
Transport companies in the Kingdom, however, told Arab News that they didn't have to pay any new road tax while entering the UAE territory.
An executive from a leading transport company that operates hundreds of trucks daily, told Arab News: "We also heard about the tax, but no one has asked to pay any new or additional amount while entering the UAE. But, if the UAE has decided to collect the tax, the transportation costs would go up in the Kingdom."
An expert based in Dammam, who did not want to be named, said the proposal has only been put on hold and could be implemented any time.
The NTA has identified 18 goods including refrigerated truck, livestock, foodstuff and chemicals that would attract AED 500 per trip. In the case of other goods, it has fixed AED 100 per truck in addition to AED 10 per ton.
In the case of passenger buses, it proposes to levy AED 100 per bus in addition to AED 5 per seat.
The NTA has offices at every crossing point with sufficient number of staff to carry out the transaction promptly.
Saud Nefai, chairman of the land transport committee in Saudi Council of Chambers, confirmed that the Chambers has taken up the issue with GCC chambers also.
Every year, about 800,000 trucks pass between Saudi Arabia and the UAE, and the road connectivity between these two countries is one of the most important trade routes in the Middle East.
Saudi authorities have informed National Transport Authority (NTA) of the United Arab Emirates (UAE) that the proposed tax on vehicles including transport trucks and passenger buses entering the Emirates would be an additional burden on the transport sector in the Kingdom.
Transport under-secretary Faisal Al Zabin, reacting cautiously to the development, told local media that the Kingdom had conveyed its view on the proposed tax to NTA chairman Nazim Bin Taher.
"We hope the UAE will reconsider its decision and look into all aspects of the taxation proposal," he said, adding that the Kingdom was not in a hurry to make any announcement on the proposed tax.
He, however, did not rule out the possibility of the Ministry of Transport imposing similar tax.
The fact that the UAE was considering such a measure even as the six-nation Gulf Cooperation Council (GCC) was pushing hard for greater cooperation in trade and manpower has taken many by surprise. The proposed tax would not only affect Saudi Arabia, but would also have an impact on the GCC nations as well as Jordan, Lebanon, Syria, Yemen and Turkey.
The proposed tax is one of several measures introduced by the UAE through NTA, which is the statutory authority for implementation of new land transport policies. The proposed road tax was to have been levied from September, 2013, but was put on hold, and was to be implemented from last week.
Transport companies in the Kingdom, however, told Arab News that they didn't have to pay any new road tax while entering the UAE territory.
An executive from a leading transport company that operates hundreds of trucks daily, told Arab News: "We also heard about the tax, but no one has asked to pay any new or additional amount while entering the UAE. But, if the UAE has decided to collect the tax, the transportation costs would go up in the Kingdom."
An expert based in Dammam, who did not want to be named, said the proposal has only been put on hold and could be implemented any time.
The NTA has identified 18 goods including refrigerated truck, livestock, foodstuff and chemicals that would attract AED 500 per trip. In the case of other goods, it has fixed AED 100 per truck in addition to AED 10 per ton.
In the case of passenger buses, it proposes to levy AED 100 per bus in addition to AED 5 per seat.
The NTA has offices at every crossing point with sufficient number of staff to carry out the transaction promptly.
Saud Nefai, chairman of the land transport committee in Saudi Council of Chambers, confirmed that the Chambers has taken up the issue with GCC chambers also.
Every year, about 800,000 trucks pass between Saudi Arabia and the UAE, and the road connectivity between these two countries is one of the most important trade routes in the Middle East.
© Arab News 2014
