VAT impact: Indians’ trip to UAE likely to be more expensive from New Year

News Network
December 27, 2017

As the United Arab Emirates is ready to embrace a new tax regime in the form of value added tax (VAT) on January 1, 2018, foreign tourists will have to shell out cost 5-7% more for their trip to Dubai or other parts of the UAEM from the New Year.

Due to its dwindling oil fortunes and weakening economy, UAE will levy VAT at 5% on a majority of goods and services including hotels, sightseeing tours and car hires.

"Accordingly, tour costs to UAE will increase by 6% to 7% due to the 5% tax and compliance cost that businesses will incur. Dubai is the biggest draw for outbound Indians and they, too, will have to pay more," said a travel agent from India.

"Even if we had confirmed bookings earlier for any service, 5% VAT will be applicable on services rendered in UAE from January 1, 2018.... We are in the process of sending amended invoice with 5% VAT for services already confirmed and invoiced. We request you to inform your guests in advance," says a mail circulated among tour agents in India by a leading travel distributor.

With UAE, especially Dubai, being a huge draw for Indian travellers, big travel companies have said they will try to minimise the impact of the enhanced cost for end users.

Karan Anand of Cox & Kings Ltd said: "The cost of a UAE holiday will rise marginally. Rhis has been factored in by travellers who plan to visit the Emirates. However, this will be offset by holiday offers we have lined up for Indian travellers who plan to celebrate the New Year, or travel for the Dubai Shopping Festival.... The UAE has been an attractive destination for Indians, and this year, Indian arrivals to Dubai crossed one million."

Just how big a draw UAE is for Indians can be gauged from the fact that of the 5.3 crore international travellers in 2016, 1.8 crore—over one-third of the total—had travelled between India and UAE. Mumbai-Dubai, followed by Delhi-Dubai were the two busiest international routes to and from India.

While many of those were flyers taking connecting flights from UAE's mega hubs like Dubai and Abu Dhabi, a majority of the 1.8 crore were flying between India and UAE.

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News Network
December 19,2025

Mangaluru: Public transport in Mangaluru is set for a state-led transformation as the government moves to deploy 100 new electric govt buses to replace unreliable private services. The initiative aims to provide a dependable alternative to private operators who have been frequently "cutting trips," leaving thousands of commuters stranded.

The announcement was made by Deputy Commissioner and MCC Administrator Darshan HV during a public phone-in session. The move specifically targets routes where private bus service has become erratic, ensuring that citizens no longer have to rely on a fluctuating private sector for their daily commute.

Restoring the Govt Presence

The transport crisis was brought to the forefront by Ramayya, a resident of Bajal, who highlighted a growing trend of private buses skipping morning and night trips. With the previous KSRTC (govt) services discontinued, residents have been left without a fallback option.

To fix this, the DC confirmed that the PM-eBus Sewa Scheme will bring 100 government-owned electric buses to the city:

•    Phased Deployment: The first 50 of the new 100 government buses are scheduled to arrive by March 2026.

•    State Infrastructure: Two new government depots, including one at Mudipu, are being prepared for operations.

•    Recruitment: The state has already begun training a new batch of government bus drivers to ensure the fleet is operational the moment it arrives.

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News Network
December 7,2025

Mangaluru, Dec 7: A 34-year-old fruit and vegetable trader in Mangaluru has reportedly lost ₹33.1 lakh after falling victim to an online investment scam run through a fake mobile app.

Police said the scam began in September, when the victim received a link on Facebook. Clicking it connected him to a WhatsApp number, where an unidentified person introduced a high-return investment scheme and instructed him to download an app.

To build trust, the fraudster asked him to invest ₹30,000 on September 24. The trader soon received ₹34,000 as “profit,” convincing him the scheme was genuine. Over the next two months, he transferred money in multiple instalments via Google Pay and IMPS to different scanner codes and bank accounts shared by the scammers. Between September 24 and December 3, he ended up sending a total of ₹33.1 lakh.

When he later requested a refund of his investment and promised returns, the scammers demanded additional payments, claiming he needed to pay a “service tax” first. Even after he paid a small amount, no money was returned, and the scammers continued pressuring him for more.

A case has been registered at the CEN Crime Police Station.

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News Network
December 15,2025

Udupi, Dec 15: What was meant to be a post-pilgrimage gathering turned tragic in Padukere village of Brahmavar taluk, Udupi district, late Sunday night, when a clash among youths escalated into a fatal assault, leaving one man dead.

The victim has been identified as 30-year-old Santosh Mogaveera, a resident of Padukere.

According to preliminary information, the incident took place during a late-night drinking party involving a group of local youths who had recently returned after completing their pilgrimage to the Sabarimala shrine. An argument reportedly broke out among the group and soon escalated into a violent confrontation.

During the ensuing brawl, Santosh Mogaveera was allegedly assaulted and collapsed at the spot after sustaining serious injuries. He was rushed by local residents to a private hospital in Brahmavar, where doctors declared him dead.

On receiving information, senior police officials, including Brahmavar Circle Inspector Gopikrishna, Kota Police Sub-Inspector Praveen Kumar T, Station ASI Manthesh Jabagoudar, and head constables Pradeep and Ashok, visited the spot and conducted an inspection.

Police have taken four youths into custody in connection with the incident. A case has been registered at the Kota police station, and further investigation is underway to ascertain the exact sequence of events leading to the death.

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