A proposed road tax on buses and lorries crossing the borders of the United Arab Emirates is stirring up anger across the Middle East.
The UAE’s National Transport Authority (NTA) wants to levy the charge on loads carried by lorries and will also charge buses a fee plus an extra amount for each seat.
Many Middle Eastern countries rely on road links passing through the UAE.
Two governments have already protested strongly to the NTA –
- Oman, which is to the south of the UAE
- Saudi Arabia – which borders the UAE to the west
In the wider region, countries as far away as Lebanon, Syria, Yemen and Turkey are complaining that the price of key commodities imported from the UAE will have to go up to cover the increased transport costs.
The proposed charges
The NTA wants to charge:
- £82 per trip for lorries carrying including refrigerated goods, livestock, foodstuff and chemicals and £16 per trip for other lorries , plus an extra charge of £1.65 per tonne carried
- £16 per bus plus around 80p per seat
Governments fear the road tax will push up the cost of living by forcing retailers and other businesses to add an extra mark up to cover the levy on goods.
Many Middle Eastern countries import significant amounts of food and cosmetics from the UAE.
Retailers estimate costs could rise by 10% and force food price inflation to increase across the region.
The NTA has had the plan to charge road taxes on vehicles crossing the border since September 2013, but has been discussing the proposals with neighbouring governments.
Major road links
“We have heard about the tax, but no one has asked to pay any new or additional amount while entering the UAE,” said a spokesman for the Omani government. “If the UAE has decided to collect the tax, transportation costs will definitely rise.
Meanwhile, the Saudi Arabian transport under-secretary Faisal Al Zabin said: “Our hope is the UAE will think again about this proposal and other aspects of road tax.
“This tax has come as a surprise when the nations belonging to the Gulf Co-operation Council, which Saudi Arabia, Oman and the UAE all belong to, were discussing closer trade links.”
According to the Saudi government, around 800,000 lorries a year cross between Saudi Arabia and the UAE, and the roads are one of the major links between nations in the Middle East.
