Fishermen in the north ask to be exempt from 'burden' of VAT

The National -- Fishermen and their associations in the north are asking to be exempt from VAT that they say is affecting their livelihood dramatically.

Sulaiman Al Khuddam, deputy of the UAE Fishermen's Cooperative Union and chairman of Dibba Fishermen association, said the fishing industry is an important part of the country’s heritage and provides jobs for many low-income and elderly Emiratis. He said subjecting the fishermen to VAT will hurt their already unstable source of income.

“VAT applies to the fishing tools, equipment, boats, boats spare parts, maintenance, fuel, everything, and fishermen with low-income and who rely on this profession as a basic income are going to be affected,” said Mr Al Khuddam.

“Fuel for each fishing trip will cost the fisherman from Dh600 to Dh1000 without VAT, but now they need to pay extra Dh30 to Dh50 each day depending on the destination of the trip, so if the fisherman arranges for 20 trips per month he will pay around Dh600 to Dh1000 extra which will affect his monthly income and that’s only for fuel,” he said.

Fishermen must also buy new equipment every two to three months due to wear and regular boat maintenance costs between Dh500 to Dh700 before the added 5 per cent tax.

Associations sell fish on behalf of the fishermen, taking a 5 per cent commission, the profit earned every month is then divided among the fishermen. That profit is now subject to VAT.

“Fishermen are also investors at the association and they get their share of the association's profit which also taxable,” Mr Al Khuddam said.

“A large segment of fishermen are elders with no extra income and we should encourage them to continue with their profession which also plays an important role in the country’s economy.”

He said the tax puts particular strain on the fishing industry because it is dependent on the seasons and subject to availability of supply and demand.

“We can’t compare it with other food industries as the fish supplies, prices and demands vary each month and in each season which also impacts the fishermen profit,” said Mr Al Khuddam.

He suggested the government issue tax exemption cards to fishermen to keep the industry alive or exempt them from paying recruitment fees for boatmen, which can cost between Dh2,000 to Dh3,000 for each worker.

“Any support from the government regarding this matter will help the fishermen and encourage them to keep their profession ongoing,” he said.