Taxi fares in Abu Dhabi will be increased at the beginning of next month and, predictably, there has been a mixed reaction. Customers naturally have grumbled. But for overworked taxi drivers, and the long-term urban transport strategy, this should be welcome news if implemented properly.
Last week, TransAD officials announced that fares in the capital will increase with a minimum charge of Dh10 for trips after 10pm. Other changes include raising the per-kilometre rates and decreasing the fee for booking a taxi through the call centre, from Dh5 to Dh3 during the day and Dh4 at night.
People who rely heavily on taxis to get around town will be hit in their pocketbooks. For lower-income passengers, it is especially important that public transport expands to keep pace. In the short term, there will inevitably be some hardship felt; transport officials must be ready to respond to increased demand by adding buses and, if necessary, new routes. In the longer term, the Metro, light rail and rapid-transit lines will reshape the island anyway.
For taxi drivers, however, the benefits should be immediate. The total number of customers may drop, but hopefully the new measures will mean they will spend less time on the road - some drivers work between 12 and 16 hours a day. "We're trying to decrease taxis just roaming in the streets without business," said Mohamed Hussain Al Hosani, a director at TransAD.
By introducing higher flag-fall fees and per-kilometre rates, the income of individual taxi drivers should increase. Just as importantly, the reduced number of working hours will give drivers more rest time, improve safety on the roads and diminish the chances of unsafe driving because of fatigue.
As the capital moves further towards a comprehensive public transport system, it is entirely possible that fewer taxis will be required. Some drivers will lose their jobs. What is important is that the remaining taxis fit into the transport milieu to the benefit of the city. In recent months, several of the taxi companies have cut drivers' commission rates; if the new fare hikes are to benefit the city as a whole, some of the earnings need to be passed on to the drivers to discourage long shifts.
Higher fares might be a temporary hardship for some. In a comprehensive transport scheme, they should eventually be a benefit for all.
Tips for SMEs to cope
- Adapt your business model. Make changes that are future-proof to the new normal
- Make sure you have an online presence
- Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
- Open communication with customers to see how they are coping and be flexible about extending terms, etc
Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
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
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Everything Now
Arcade Fire
(Columbia Records)
Tomb%20Raider%20I%E2%80%93III%20Remastered
%3Cp%3EDeveloper%3A%20Aspyr%0D%3Cbr%3EPublisher%3A%20Aspyr%0D%3Cbr%3EConsole%3A%20Nintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20series%20X%2FS%0D%3Cbr%3ERating%3A%203%2F5%3C%2Fp%3E%0A
