Like every other tax everywhere, it raises the prices of everything. So now the high rents and cable/internet services will cost more as well as the other things too which didn't before.

The VAT is a necessary tax, even though it's going to hurt the laborers more so than managerial people here. Manager's will still whine and complain and some will leave. I've read only two percent to five percent, which isn't much, but it means if you want that nice watch you need to purchase it before the end of the year.

I don't think we'll see an income tax just yet, but it will come because it has to for the future of Dubai.