Abu Dhabi, United Arab Emirates - December 27th, 2017:  Workers at local shop Baqala to go with a story on VAT. Wednesday, December 27th, 2017 in Abu Dhabi. Chris Whiteoak / The National
Abu Dhabi, United Arab Emirates - December 27th, 2017: Workers at local shop Baqala to go with a story on VAT. Wednesday, December 27th, 2017 in Abu Dhabi. Chris Whiteoak / The National

No more rounding is a change for the better



The latest development in the UAE's introduction to VAT, which favours consumers, arrived as a welcome surprise. Earlier this month, the Department of Economic Development announced that shops in Abu Dhabi could round up by up to 20 fils on transactions. Now, the DED has declared that businesses must instead return exact change to consumers.

This adaptation will appease consumers and help those in need. Many residents had been bulk-buying supplies to offset the additional costs of rounding up. Thanks to the latest decision, a Dh1 bottle of water that previously cost Dh1.25 after rounding up, will now be sold for Dh1.05. Naturally, the burden to come up with the change will fall on shops.

And therein lies a new challenge. As The National reported, the DED's reversal on rounding up follows assurances from the UAE's Central Bank that "the amount of coins including small denomination in the market is sufficient". But if necessary, the Bank insists, it will mint more.

Nonetheless, many will say that small denomination coins, including 1, 5 and 10 fils, are seldom seen in circulation, potentially spelling significant stress for small businesses to return exact change. While large retail chains and supermarkets can afford to shoulder the additional cost by rounding down in the absence of smaller currency, more modest businesses cannot. Sadly, the new rule may also end the charming flexibility that characterises corner shop transactions.

Re-minting is one solution, though it might make this country an outlier in a world that is leaving small change behind. While smaller denominations have been withdrawn in Europe and Canada, China is increasingly cashless. Back in 2015, 44 per cent of the Kenyan economy passed through mobile payment platform M-Pesa. Moreover, the UAE itself has made strides in welcoming new mobile payment channels.

VAT is an important step in this country's economic transformation. Last week Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai  announced that 70 per cent of the revenue accrued will be channelled back into local government projects. Given estimates of Dh12bn in its first year and Dh20bn in its second, VAT's potential impact is huge. While those are big numbers with significant potential windfalls for the country, it is the small and important victory of being able to ask for and receive the correct change that we should recognise today. 

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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How does ToTok work?

The calling app is available to download on Google Play and Apple App Store

To successfully install ToTok, users are asked to enter their phone number and then create a nickname.

The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.

Users can also invite other contacts to download ToTok to allow them to make contact through the app.

 

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes. 
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

'O'
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Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind
UAE currency: the story behind the money in your pockets
THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Set-jetting on the Emerald Isle

Other shows filmed in Ireland include: Vikings (County Wicklow), The Fall (Belfast), Line of Duty (Belfast), Penny Dreadful (Dublin), Ripper Street (Dublin), Krypton (Belfast)

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A little about CVRL

Founded in 1985 by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, the Central Veterinary Research Laboratory (CVRL) is a government diagnostic centre that provides testing and research facilities to the UAE and neighbouring countries.

One of its main goals is to provide permanent treatment solutions for veterinary related diseases. 

The taxidermy centre was established 12 years ago and is headed by Dr Ulrich Wernery. 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Pathaan
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Top%2010%20most%20competitive%20economies
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