Dubai Government to raise funds with two new fees, Ruler announces

The Dh10 Knowledge Dirham and Dh10 Innovation Dirham charge will fund projects for the public benefit

A store cashier receives payment from a customer on Tuesday, Nov. 8, 2011, at a local convenience store in Abu Dhabi. (Silvia Razgova/The National)
 currency dirham dirhams

The Dubai Government will raise funds with two new fees that will be charged for a wide range of government services.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, on Monday issued a law stating the Dh10 Knowledge Dirham will fund education and cultural projects in Dubai.

It will be added to all transactions for government services in Dubai, including federal government services whose revenues are allocated to Dubai's treasury.

Sheikh Mohammed also approved the Dh10 Innovation Dirham which will support "innovation-related projects and involve the public in supporting innovation", a news release read.

It will be levied on any "services provided by a government entity" and the revenues allocated to the Dubai Future Foundation.

The Knowledge Dirham and Innovation Dirham will not be refunded when transactions are cancelled, the release added, but they will not be charged for transactions less than Dh50.

The fee will not be added to healthcare services provided by government departments, or traffic fines.

No exact date was set for the introduction of the fee. A news release said the law will be effective from the date of its publication in the government's official gazette.


Read more:

Economics 101: Will VAT diversify UAE government revenues?

VAT: a big change is on the way and it makes economic sense