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IMF tells oil crisis hit Gulf to launch VAT

  • VAT
  • 11 November 2015 | Richard Asquith

IMF tells oil crisis hit Gulf to launch VAT

The head of the International Monetary Fund, Christine Legarde, has restated that the six Gulf states should implement a Value Added Tax to help cope with the new low-oil price world.

The price of oil on the world markets has more than halved in the past year. Revenues for the Gulf Co-operation Council states are down by over $260 billion this year.

This is exposed the countries’ narrow tax base, largely dependent on oil levies, to volatile plunges. It also leaves a number of states with large deficits and debts to manage. The countries are forced at present to use up long term reserves.

The six states of the are: Saudi Arabia; Qatar; UAE, Bahrain; and Kuwait.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.