Lack of small change hounds residents as VAT comes into effect
The primary complaint being made by UAE residents upon the implementation of VAT is the lack of small change being returned. Confused? Let us explain.
Say you buy a pack of gum that was previously priced at Dhs1, now with the addition of VAT your gum is priced at Dhs1.05. You give the cashier Dhs1.25 as the 25fils coin is the smallest you have, however no change is returned to you.
This is a common problem facing buyers, as there seems to be a lack of one, five and 10 fils coins in the market. While the UAE Central Bank has stated that they still continue to mint the coins, they are currently unavailable in the market.
Gulf News visited the branches of three major banks in the UAE in an effort to obtain small change, but the UAE daily reports that they were unable to acquire anything lower than a 25fils coin.
The Abu Dhabi Department of Economic Development (ADDED) has said that small change of 10 fils and five fils can be rounded off to 25 fils and traders should not charge customers more than 20 fils of the bill amount. Elaborating further, the Deparment said that if for example, a bill shows Dhs10.05, one may pay up to Dh10.25, and if the bill is Dh10.35 fils, it is fine to pay up to Dh10.50 fils.
What does this mean for the future of VAT in the UAE? Will we continue to be short-changed, or will smaller denominations make their way into the market?
You can complain about this issue to the Ministry of Economy on the number 600522225