ISSA chief says UAE ships should be VAT exempt
SEE ALSO: COMMENT: VAT and the Supply Chain
New Emirati ISSA chairman says he will work with UAE’s Federal Tax Authority to have ship chandlery exempted from VAT.
“I intend to call upon the Federal Tax Authority to consider the cancellation of the value added tax (VAT) and customs duties on materials supplied to the ships as they go abroad,” says Saeed Al Malik, chairman of the International Shipsuppliers & Services Association (ISSA).
“I hope to reach an agreement after discussing this issue with the officials of the Federal Tax Authority so that companies in the UAE can compete with their counterparts from other competing countries,” he added.
Saeed Al Malik is the first Arab national ever to hold the position.
“I am the first Arab to assume this position and I am truly honoured to be a representative of the UAE and Arab countries. I am looking forward to heading the ISSA's initiatives and programs that are aimed towards protecting the interests of IMO’s members, offer e-commerce services to its 1800 members and provide them with the necessary legal and financial protection services,” Al Malik said when he was elected.
“The objectives if ISSA, which operates in 42 countries, are to protect the interests of IMO’s members in the Maritime Sector, Customs and the Tax Authority. There has been great success in reaching an agreement with the IMO to solve disputes and problems related to vessels declared bankrupt or distressed.”
Al Malik explained that the UAE is a member of the IMO since 1996, and the joining project was supported by Dubai Ports at that time, pointing out that the UAE National Assembly was including 12 members which become 24 today.
First established 62 years ago in the Netherlands. A year later, an office was opened in the British capital, London, which was well known in the field of navigation in the world and with the presence of international shipping companies, the ISSA has now grown to a membership of over 2,000 ship suppliers from all over the world.