Dubai — Dubai ruler Sheikh Mohammed Bin Rashid Al-Maktoum, has issued an order to freeze Dubai government fees for a period of three years, state news agency WAM reported on Sunday.

Crown Prince of Dubai and Chairman of Dubai Executive Council Sheikh Hamdan Bin Mohammed Bin Rashid Al-Maktoum tweeted the new order which comes in line with the directives of the Vice President, Prime Minister and Ruler of Dubai Sheikh Mohammed Bin Rashid Al-Maktoum.

Dubai has committed not to raise government fees for the next three years to promote the emirate’s competitiveness after the United Arab Emirates introduced a 5% value added tax (VAT) this year.

Dubai has a low-tax environment and raises the bulk of its revenue through fees such as business licensing, real estate approvals, parking and transport. It expects to raise 71% of state revenue from such fees in 2018.

The UAE cabinet made a similar commitment last week not to increase fees at a federal level for three years, the statement said.

Dubai consumer inflation rose moderately in January after the introduction of VAT. — Al Arabiya English