Tariff costs are borne by ordinary people

With reference to the report Trump says US will 'boom' as markets fall amid recession fears (March 12): The tariff wars between the US, Canada, Mexico and China and Mexico will only make products more expensive in these countries. Tariffs of 15 to 25 per cent cannot be absorbed by the exporting countries or the importers or their agents.

The importers will pass on the additional levies to the consumers in terms of higher prices. Eventually, products at the shops or supermarkets will become more expensive by 25 per cent or more. Then, the poorer consumers will be compelled to cut purchases and consumption.

Many western countries are already reeling from inflation. The new levies will add to the woes of the poor.

The world is a stratified place: the upper-middle classes and the rich, versus the poor. Many among the affluent class may not even know the price of milk, bread, butter or cauliflowers. There are apps that deliver shopping to the door or people's domestic help do the shopping, cooking and serving. However, the poor are hurt by every increase in prices. They feel the impact if the price of flour or cooking oil increases by even five per cent. Many of the poor then reduce their consumption of even these basic items.

Therefore, any blanket increases in tariffs by countries can severely depress consumption among the lower-middle class and the poor.

Rajendra Aneja, Dubai

UAE's win at Special Olympics World Winter Games

With regard to Ramola Talwar Badam's piece Snowboarder wins UAE's first ever gold medal at Special Olympics World Winter Games (March 12): Many congratulations to team UAE! With all the hard work and the long hours of training that the athletes have put in, that was a well-deserved win.

Safia M, Abu Dhabi

Syria needs to be reshaped by Syrians

With reference to Khaled Yacoub Oweis and Lizzie Porter's report Civilian death toll mounts in Syria's Alawite heartland despite end of government offensive (March 12): A partnership has to be built on mutual respect, non-interference, and regional stability. That would go some way to ensure Syria's future is shaped by its own people, not by the same external influences that have fuelled its destruction and oppression.

Aida Barak, Istanbul. Turkey

The White House and US student protests

In reference to the video of White House press secretary Karoline Leavitt having accused student protesters of "siding with terrorists" in response to a question from Jihan Abdalla (March 12): What about the 16,000 children killed by Israel? The US has no qualms tolerating and praising those actions.

Margaret Bennett, Philadelphia, Pennsylvania

This was a masterclass in gaslighting. You can't be both the oppressor and the victim.

Amira Salem, Dubai

The UAE's improving education rankings

In regard to Nick Webster's article UAE higher education offerings continue to improve, says global report (March 12): The UAE has quickly become a prominent hub for students from South Asia and neighbouring countries, and this is a commendable achievement. Over recent months, the country has made significant strides in various sectors, especially in education, where it now ranks sixth globally. This advancement is a testament to the UAE's commitment to provide world-class learning opportunities.

K Ragavan, Bengaluru, India

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