The UAE will implement value added tax (VAT) at the rate of 5% from January 1, 2018, said Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs. The minister was speaking to reporters after a joint press conference on Wednesday with Christine Lagarde, Managing Director of the International Monetary Fund (IMF), in Dubai.   GCC countries have recently agreed that they will introduce VAT at a rate of 5% in 2018. The framework agreement on the implementation of VAT across the GCC is expected in June this year.  The UAE will impose five per cent VAT while exempting 100 food items, healthcare and education. In the first year, the country is expected to generate AED12 bn from tax revenue. Meanwhile, the minister said that “implementation of corporate income tax is not on our immediate agenda. We will study the impact of direct taxation on competitiveness before introducing such taxes,” said Al Tayer. (Gulf News)