"VAT and excise duties will change the behaviour of individuals, companies and countries. It is essential that the GCC apply it together, otherwise there is a risk that smuggling will increase.
Companies will need to adjust. Tax and duties will represent an increased cost to them, a cost that they will initially have to pass on to their customers. But over time, they may find different ways to source or produce their products, which may bring the price of producing the product down. There is, naturally, no guarantee that consumers will see any reductions, but they might, particularly on products that are sensitive to price: companies are always keen to keep impulse purchases low, because otherwise consumers won’t buy so many."