Representatives from six GCC ministries met to discuss the implementation of a value-added tax in the region, Reuters reported.
Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE participated in the meeting.
The representatives came to an agreement on several major issues, according to the UAE ministry of finance undersecretary Younis Haji al-Khouri.
"We agreed on key issues to apply zero tax on healthcare, education, social services sectors and exempt 94 food items," said Khouri.
Khouri noted that the tax would be implemented 18 months to two years after reaching a final agreement. He said the states hope to introduce the tax in three years.
The participating nations have never before levied a direct tax and currently impose only minimal taxation. However, Gulf countries have been hard hit by falling oil prices and seek to establish new sources of revenue.
The VAT will be implemented at the state level, but the GCC plans to come to a region-wide agreement. According to experts, introducing the tax regionally will prevent smuggling and reduce the impact on competitiveness.
