Picture used for illustrative purpose only.

The Ministry of Finance, MoF, issued three new decisions for federal entities across the UAE, as part of its remit to revise and reduce federal fees.

These decisions are: Cabinet Resolution No. (36) of 2020 on registering suppliers in the Federal Supplier Register, Cabinet Resolution No. (37) of 2020 on amending certain provisions of Cabinet Resolution No. (4) of 2019 on Procurement Regulation and Storehouse Management in Federal Government, and Cabinet Resolution No. (38) of 2020 on amending Cabinet Resolution No. (4) of 2015 on Fees for services provided by the Ministry of Infrastructure Development.

The decisions are part of the ministry’s efforts to boost the national economy and stimulate the country’s business environment.

Commenting on this, Younis Haji Al Khouri, Undersecretary of MoF, said that the move is in adherence with the directives of the wise leadership to reduce fees, and provide incentives to investors and companies operating in the country. This is to enhance the national economy and enable business growth and achieve economic balance in the country, especially in light of the repercussions of COVID-19 pandemic.

He said: “The Ministry of Finance coordinates its efforts with all relevant federal ministries to review government fees that could be abolished or reduced. This is based on in-depth studies and benchmarks set to enhance the attractiveness of the national economy to investors and to reduce the cost of doing business, to strengthen the nation’s standing in global competitiveness indicators, in line with the goals of UAE Vision 2021.”

The decisions included: reduction of fees of Registering suppliers in the Federal Supplier Register at MoF and the Ministry of Infrastructure Development by 50 per cent from Dhs1,000 to Dhs500, as well as cancellation of registration renewal fees.

Furthermore, MoF has modified Procurement Regulation and Storehouse Management in Federal Government, by cancelling fees for selling tender documents in federal entities (ministries and authorities). These decisions will be effective upon their publication in the Official Gazette.

The Ministry of Finance virtually held the Financial Policy Coordination Council’s second meeting recently.

Younis Haji Al Khoori, Undersecretary of MoF and Chairman of the Council chaired the meeting, alongside Saeed Rashid Al Yateem, Assistant Undersecretary of Resources and Budget Sector and Vice-President of the Council.

Al Khoori underscored the importance of the meeting, which was in light of the unprecedented circumstances the world is experiencing due to the COVID-19 pandemic.

He highlighted the efforts made by members and representatives of financial departments and the Central Bank to deal effectively with the challenges posed by the pandemic.

He said, “The Council seeks to find solutions that contribute to facing the economic challenges of the current crisis and to prepare for the requirements of the next stage. This will be done in a manner that ensures the integrity of the financial system in the country and enhances the efficiency of the government’s financial work.”

During the meeting, the Council reviewed the latest developments on the requirements for exchanging information for tax purposes. The participants also shared success stories related to the MoF’s Federal Automated Revenue Estimation System, and reviewed the research and development expenditure projects, as well as the data collection process.

Furthermore, the Cabinet Resolution No. (1/7) of 2020 on preparing for the post-COVID-19 era was discussed. Additionally, the implementation of the previous meeting’s recommendations were reviewed. The Central Bank also gave a presentation on vital monetary and banking developments in the country.

Three such meetings are held annually, and the Council is reconstituted every three years. The Government Financial Policy Coordination Council was formed by the UAE Cabinet’s decision No. 39 in 2008. Its members consist of the Undersecretary of the Ministry of Finance, representatives from local UAE governments and a representative of the UAE Central Bank.

MoF has also announced recently the launch of the Federal Automated Revenue Estimation System, FARES, as part of its strategy to further enhance government operations in order to advance digital transformation in the country.

The system will automate the ministry’s revenue estimations model and further improve integration of data to calculate estimates based on statistical and accounting standards.

Saeed Rashid Al Yateem, Assistant Undersecretary of Resource and Budget Sector, pointed out the importance FARES, which coincides with the revenue cycle of 2022-2026. The Ministry of Finance is preparing for the next cycle with the end of the current one being at the end of 2021.

Al Yateem reaffirmed the ministry’s efforts to enhance financial technologies and launch new digital initiatives that bolster the UAE Vision 2021, as well as the goals of the UAE Artificial Intelligence Strategy 2031.

He said, “MoF embraces the latest technological solutions, including AI to prepare for the Fourth Industrial Revolution. We are on course to digitise the government’s financial operations in line with highest international standards.”

WAM