Latest news with #MoF
The Sun
10 hours ago
- Business
- The Sun
MoF to enhance pre-qualified procurement method if reintroduced
KUALA LUMPUR: The Ministry of Finance (MoF) will conduct a thorough review of potential improvements if the Selected Pre-Qualified Open Tender Procurement Method (Selected Pre-Q Procurement) is reintroduced in the future. Deputy Finance Minister Lim Hui Ying stated that the enhancements must eliminate loopholes that could allow manipulation and ensure full transparency in every stage of the process. 'The Selected Pre-Q Procurement is a relaxation of the procurement method, an enhancement of the existing pre-qualification tender, enforced through the Ministry of Finance Treasury Circular with the aim of shortening the procurement period. Projects using this procurement method can be awarded immediately to the successful company,' she said during the debate on the Auditor-General's Report (LKAN) 2/2025 in the Dewan Rakyat. Lim explained that the ministry would strengthen control mechanisms to prevent companies that do not meet criteria from being shortlisted in the first stage and later invited in the second stage. 'This is to prevent companies that do not meet the criteria from being shortlisted in the first stage and subsequently being invited in the second stage, should the Selected Pre-Q Procurement be reinstated in the future,' she added. The LKAN 2/2025 report, released on July 21, highlighted that the Selected Pre-Q Procurement in three ministries failed to expedite procurement due to manipulation and lack of transparency, with only certain companies approved for tenders. The method was in effect from March 15, 2023, to December 31, 2024. Deputy Minister of the Ministry of Energy Transition and Water Transformation (PETRA) Akmal Nasrullah Mohd Nasir clarified that the audit covered the Ministry of Natural Resources, Environment and Climate Change (NRECC), which managed procurement at the time. He noted issues such as non-compliance with first-stage criteria and repeated invitations to the same company for different projects. 'The selection method for company information sources or documents in the first-stage evaluation had been presented to and approved by the NRECC Procurement Board at the time,' he said. He added that a review showed 52 companies had passed the pre-qualification stage. – Bernama
Khaleej Times
5 days ago
- Business
- Khaleej Times
New UAE tax rule: Less sugar to reduce prices of sweetened drinks, says expert
Incentivising manufacturers to reduce sugar levels in their products would not only encourage healthier dietary choices but would also benefit consumers with lower prices, a tax expert told Khaleej Times on Friday. This comes after the announcement by the Ministry of Finance (MoF) and Federal Tax Authority (FTA) to implement a selective tax on sugar-sweetened beverages (SSBs). From early next year, the excise tax imposed on SSBs — including carbonated and energy drinks — will be based on their sugar content rather than their category, replacing the current fixed percentage-based rate. Currently in the UAE, all carbonated drinks as well as powdered and concentrated drink mixes with added sugar or other sweeteners are levied 50 per cent excise tax. Energy drinks and all tobacco products, meanwhile, are charged 100 per cent. Both the MoF and FTA have yet to provide details on the percentage of excise tax on sweetened drinks, but Thomas Vanhee, founding partner at Aurifer Middle East Tax Consultancy, has already called the new scheme a win-win formula for the consumers. 'With the introduction of excise tax that was broadened in 2019, the basis for the (excise tax) calculation has been the retail sales, which is the price at which the final consumer normally buys the product,' noted Vanhee, who is also an affiliate professor of tax law. 'This will be replaced in early 2026 with a system where, instead of looking at the retail sales price, we look specifically at the sugar content. This could indeed provide an incentive for companies to reduce the sugar content so that they can improve their margins, reduce the taxes, and therefore would be more beneficial for the consumers with retail prices being lowered,' Vanhee added. Accelerating reforms 'From the excise tax point of view,' Vanhee continued, 'the importers or manufacturers are mainly going to be the ones that would benefit from the new tax scheme. But ultimately and hopefully they will pass on the savings to the consumers. 'Even the local restaurants or cafeterias will also benefit as they will be buying from the distributors or manufacturers.' Vanhee observed: 'The excise tax was initially meant to reduce the consumption of products which are considered harmful for health such as energy drinks, tobacco, and later on, sugary drinks were added. I believe the UAE now wants to accelerate the effects of this tax by a change in policy, hoping to further decrease consumption of sugar in drinks.'
Qatar Tribune
6 days ago
- Business
- Qatar Tribune
Qatar records QR0.8 bn budget deficit in Q2 2025
Tribune News Network Doha Qatar's general budget recorded a deficit of QR0.8 billion during the second quarter of 2025 (April, May, and June), the Ministry of Finance (MoF) announced on Thursday. In a statement published on its account on the social media platform X, MoF highlighted that the deficit was covered through debt instruments. The total revenues for the second quarter of 2025 stood at approximately QR59.8 billion, reflecting a 0.1 percent decrease compared to the second quarter of 2024, the statement read. It clarified that these revenues comprised QR34 billion in oil and gas revenues and QR25.8 billion in non-oilrevenues. The statement further noted that total public expenditure during the second quarter of 2025 amounted to roughly QR60.6 billion, registering a 5.7 percent increase compared to the second quarter of 2024. The expenditure was allocated as follows: QR18.334 billion for salaries and wages, QR 21.925 billion for current expenditures, QR 17.507 billion for major capital expenditures, and QR 2.838 billion for minor capital expenditures. The general budget posted a deficit of QR 0.5 billion during the first quarter of 2025 (January, February, and March). The total revenues for the first quarter of 2025 stood at approximately QR49.4 billion, while total public expenditure amounted to roughlyQR49.9 billion.
Gulf Today
6 days ago
- Business
- Gulf Today
MoF issues Decision on Depreciation Adjustments for Investment Properties held at Fair Value
The UAE Ministry of Finance (MoF) has issued a new Ministerial Decision regarding Depreciation Adjustments for Investment Properties held at Fair Value for the Purposes of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. Under this decision, taxpayers (who elect for the realisation basis) can elect to deduct depreciation from their taxable income (hereafter known as 'tax depreciation') for investment properties that are held on a fair value basis. The tax depreciation deduction available will be the lower of the tax written down value of the investment property or 4 percent of the original cost of the investment property, for each 12-month tax period or otherwise prorated for part of the tax period, during which the relevant investment property is held, and will be available to taxpayers who hold investment properties prior to and/or after the introduction of corporate tax. The decision provides clarity as to the value upon which tax depreciation can be claimed depending on whether the investment property is transferred between related parties or third parties or has been constructed/developed by the taxpayer. The decision provides parity between taxpayers who hold investment properties on a historical cost basis, who can already benefit from a deduction for accounting depreciation, with those who hold investment properties on a fair value basis. To avail this benefit, this decision therefore requires taxpayers to make this irrevocable election in their first Tax Period beginning on or after 1 January 2025 in which they hold an investment property and such election will apply to all investment properties going forward. Given the realisation basis must have been elected for by taxpayers wanting to benefit from the tax depreciation election, and that the realisation basis election is generally made in the first Tax Period, the decision also allows for an exceptional window for taxpayers to opt in to elect for the realisation basis to avail the tax depreciation deduction. Finally, the decision provides guidance on when the claw-back of tax depreciation may occur in instances outside of a disposal of an investment property such that taxpayers are aware of their tax compliance obligations and are able to accurately assess their returns on investment property. The release of this decision reflects the Ministry's commitment in ensuring a level playing field for all taxpayers, thus enhancing the principles of tax neutrality and equity in the UAE Corporate Tax regime and ensuring such deductions are aligned with international best practice. WAM
Qatar Tribune
6 days ago
- Business
- Qatar Tribune
Qatar records QR0.8 billion budget deficit in Q2 2025
The State of Qatar's general budget recorded a deficit of QR0.8 billion during Q2 2025 (April, May, and June), the Ministry of Finance (MoF) announced on Thursday. In a statement published on its account on the social media platform X, MoF highlighted that the deficit was covered through debt instruments. The total revenues for Q2 2025 stood at approximately QR59.8 billion, reflecting a 0.1 percent decrease compared to Q2 2024, the statement read. It clarified that these revenues comprised QR34 billion in oil and gas revenues and QR25.8 billion in non-oil revenues. The statement further noted that total public expenditure during Q2 2025 amounted to roughly QR60.6 billion, registering a 5.7 percent increase compared to Q2 2024. The expenditure was allocated as follows: QR18.334 billion for salaries and wages, QR21.925 billion for current expenditures, QR17.507 billion for major capital expenditures, and QR2.838 billion for minor capital expenditures. The general budget posted a deficit of QR0.5 billion during Q1 2025 (January, February, and March). The total revenues for Q1 2025 stood at approximately QR49.4 billion, while total public expenditure amounted to roughly QR49.9 billion.
