Economic effects of tax in the customs of the United Arab Emirates

Abstract

In the late ninetieths of the twentieth century some attempts appeared to omit the costume taxes in the Gulf Coordinating Board states in spite of the existence of many economic advantages which come from custom taxes. Therefore, the aim of this research is limited to emphasize the advantages of the economic effects of custom taxes in the United Arab Emirates as it is a sample of the Gulf and developing countries in relating to its economic and development levels. There are several objectives of imposing custom taxes proposed by economists, the main objectives are: Financing government budget, directing the imports and exports of goods and services to support trade balance, encouraging domestic manufacturing to increase the exports of its products, to fulfill industry specialization, to increase value added and gross national product, to compete with the foreign products, and finally to direct the domestic consumption of imported foreign goods.In this research I display the custom taxes objectives briefly, and test their data in UAE during the years 1991- 1996 and the last objective in 1998. I analyzed all those data by time series method and by spearman correlation coefficient and the last objective by proportional importance method. The research indicators emphasized the advantages achieved of custom taxes imposed in UAE, so the conclusions and the recommendations of this research are written depending on those research indicators.