The official said that the technical studies about the tax are not yet complete and that implementing the VAT requires the appropriate economic climate.

The current discussion revolves around the sectors to be covered by the tax, and particularly whether or not financial services will be covered.

The education and health sectors probably will be accorded special treatment.

The Gulf countries are seeking to enhance government revenues by introducing indirect taxes, especially because they will lose part of their customs revenues through the expansion of free trade agreements with the rest of the world.

For full story see: http://www.alarabiya.net/articles/2011/06/01/151405.html