US President Joe Biden is highlighting billions of dollars in his giant bipartisan infrastructure deal to pay for the installation of electric vehicle chargers across the country, an investment he says will go a long way to curb planet-warming carbon emissions while creating well-paying jobs.
Mr Biden on Wednesday visited a General Motors plant in Detroit that manufactures electric vehicles, and drove a battery-powered Hummer. He accelerated enough to make the wheels squeal and the truck to jet forward.
"Anyone wanna jump in the back?" Mr Biden asked.
He used the occasion to make the case that the $7.5 billion in the new infrastructure law for electric vehicle chargers will help America get “off the sidelines” on green-energy manufacturing.
Currently, the US market share of plug-in electric vehicle sales is one third the size of the Chinese EV market.
“Up until now, China has been leading in this race — that’s about to change,” Mr Biden said.
“We’re going to make sure that the jobs of the future end up here in Michigan, not halfway around the world.”
Big bill becomes law
“It’s a big deal,” Mr Biden declared as he signed the bill into law at a White House ceremony on Monday.
Republicans, even some of those who voted in favour of the infrastructure package, are criticising Mr Biden for being preoccupied with electric vehicle technology at a time when Americans are contending with a spike in gasoline and natural gas prices.
Senate Republican leader Mitch McConnell took to the Senate floor on Tuesday to make the case that “the Biden administration doesn’t have any strategic plan to snap its fingers and turn our massive country into some green utopia overnight".
“They just want to throw boatloads of government money at things like solar panels and electric vehicles and hope it all works out,” said Mr McConnell, one of 19 Republican senators who voted in favour of the infrastructure bill.
He added: “American families are staring down the barrel of skyrocketing heating bills and the Democrats’ response is to go to war against affordable American energy.”
White House Press Secretary Jen Psaki has stressed that the administration is looking at “every tool in our arsenal” to combat high gasoline prices, saying that Mr Biden and his economic team are “quite focused” on the issue.
The GM plant that Mr Biden will visit was scheduled to be closed in 2018 as the carmaker tried to shed excess factory capacity to build sedans as buyers shifted towards SUVs and trucks. But the plant, which had built cars with internal combustion engines since it opened in 1985, was rescued a year later and designated Factory Zero to build zero-emissions electric vehicles.
Currently, the 381,000-square-metre plant, which straddles the border between Detroit and the enclave of Hamtramck, is making pre-production versions of the electric GMC Hummer pickup truck.
Next year, it will start making a Hummer electric SUV. The plant will start cranking out the Origin, an electric vehicle for GM’s Cruise autonomous vehicle subsidiary, in 2023, and an electric Chevrolet Silverado pickup at an unspecified date.
The plant will not see much direct impact from the infrastructure spending, but it will benefit from $7.5bn for the electric vehicle charging network.
Mr Biden wanted $15bn to build 500,000 chargers and has not given a number for how many could be constructed for half that amount.
It is probable that $7.5bn will not be enough. The International Council on Clean Transport says the US will need 2.4 million charging stations by 2030 if 36 per cent of new vehicle sales are electric. Currently there are about 45,500 charging stations nationwide with about 112,000 plugs.
Mr Biden is hoping to do even more to promote electric vehicles, including a provision for a $7,500 tax credit for consumers who buy electric vehicles through 2026 that has been floated as part of his proposed $1.85 trillion social services and climate bill.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
