Dubai Chamber of Commerce and Industry proposed to reduce the value-added tax to 2% or postpone its payment until the end of 2020, and the formation of an expanded economic council to develop constructive economic plans for the current stage.
The Chamber stressed the importance of enhancing cash liquidity by speeding up payments from government agencies and its subsidiaries to contractors, eligible and suppliers, reducing customs fees by 50% until the end of 2020, and reducing fees for water, electricity and services bills by 50%.
On behalf of the representatives of the private sector, the Chamber submitted about 15 proposals to confront the current global crisis. Within a message sent by Dubai Chamber of Commerce and Industry to His Highness Sheikh Ahmed bin Saeed Al Maktoum, Commissioner-General on the path of Dubai's economy in the Dubai Council.
The message included Majid Al Ghurair’s thanks to His Highness Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, Chairman of the Supreme Committee for Emergency and Crisis in Dubai, and His Highness Sheikh Ahmed bin Saeed Al Maktoum for attending the meeting with representatives of Emirati family companies in Dubai on April 21 to review the future vision of the emirate’s economy in The near future in light of the repercussions of the spread of the emerging corona virus (Covid 19).
Al Ghurair emphasized the positive impact of the meeting in raising the confidence of the private sector in the government and the measures and decisions taken to maintain a well-established economy in Dubai and confront the current crisis, noting that the proposals included:
1. The importance of enhancing cash liquidity by speeding up payments from government agencies and its subsidiaries to contractors, beneficiaries, and suppliers.
2. The need to help companies return surplus labor to their countries and finance the costs of re-travel of employment and then install them over companies for a period of 12-24 months, especially for small and medium-sized companies.
3. Cancellation or reduction of 50% in fees for issuing and renewing commercial licenses until the end of 2020.
4. Freezing the application of the market fee of 2.5% to all establishments operating in the emirate until 2020.
5. Reducing customs duties by 50% until the end of 2020.
6. Reducing the fees for water, electricity and services bills by 50%.
7. Reducing the value-added tax to 2% or postponing its payment until the end of 2020 and canceling all its fines to improve the liquidity position of companies.
8. Reducing residence fees, extending all expired and canceled stays to investors, individuals, and their families until the end of the current year, and canceling all fines it incurs.
9. Cancellation of all local and federal government fines and violations until the end of 2020.
10. Concerning the retail sector, the proposals emphasized the importance of replacing the calculation of rental allowances with the percentage of sales until the end of the current year.
11. Allow the cancellation of commercial lease contracts without any penal terms or fines for the rental companies.
12. Consider assisting sector companies affected by a percentage of employee wages or a higher salary limit for a specified period of time.
13- Consider granting loans with symbolic interest supported by the state to companies operating in the affected sectors, especially the owners of medium and small projects.
14. Ensure that all border crossings and land borders are open to state exports to neighboring countries such as Saudi Arabia, and the safe and rapid flow of exports through its territory is guaranteed.
15. Forming an expanded economic council or a committee of businessmen and decision-makers in the government to develop constructive economic plans for the current stage.