The official added the authorities are still evaluating the social and economic impact of the laws, but drafting was expected to be finished “very soon”.

The official refused to comment on the proposed tax rates or when they might take effect.

Officials have previously said VAT is unlikely to be introduced before other Gulf Cooperation Council countries adopt it as otherwise the UAE's competitiveness could be damaged and there might be a surge in smuggling across borders.

A UAE Finance Ministry report released yesterday says the Cabinet has approved versions of the draft laws and adds the Ministry is working on creating a federal tax authority, but does not say when the body might start work.

For full story see: UAE: Corporate Tax, VAT Laws to be Finalised by October