Legislation Details
- Full Title: Cabinet Resolution Concerning the Federal Government Revenue Collection System
- Law Type: Cabinet Resolution
- Law Number: No. (71) of 2022
- Issued Date: 10 Aug 2022
- Effective Date: [The legislation does not specify]
- Official Gazette: No. 734
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 13
- Chapters/Parts: 0
- Amendments: [The legislation does not specify]
Summary
This Cabinet Resolution regulates the federal government's revenue collection system in the United Arab Emirates. It establishes a new mechanism for federal entities to collect government service fees through commercial banks instead of the previous e-Dirham system. The Resolution grants the Minister of Finance authority to oversee the transition, set bank fees, and issue implementing regulations. This change aims to streamline revenue collection and provide more payment options for customers. The Resolution is significant for businesses and individuals in the UAE who make payments to federal government entities, as it will impact the fees and processes they encounter. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Arts. 1-6)
What is the scope and purpose of this law?
The Cabinet Resolution applies to all federal entities in the UAE, including ministries, public bodies, institutions, and agencies that are part of the federal government's organizational and administrative structure. It regulates the mechanism for these entities to collect government service fees from customers through commercial banks, replacing the previous e-Dirham system. The purpose is to streamline revenue collection and provide more payment options for customers. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Arts. 1-2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- State: United Arab Emirates (UAE)
- Ministry: Ministry of Finance
- Minister: Minister of Finance
- Federal Entities: Ministries and other public bodies, institutions and Federal Government agencies that are considered part of the organizational and administrative structure of the State
- Bank fees: Amounts of money deducted from the Customer card in accordance with the percentage agreed upon with the Service Provider bank and approved by the Ministry of Finance for providing the e-Payment Service for government service fees
- Payment Service Provider: The Bank contracted by the Federal Entity to provide the e-Collection Service
- Agreement: The Agreement between the Federal Entity and the Bank to provide the e-Collection Service
(Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 1)
What are the main obligations and requirements?
The Resolution imposes the following key obligations: 1. Federal entities must select a bank from the list approved by the Ministry of Finance to provide the e-Collection service for federal government revenues. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 2(1)) 2. Customers must bear the bank fees imposed by the contracted banks, which must adhere to the fee list specified in the agreement and not charge any additional fees. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 2(2)) 3. The Payment Service Provider (contracted bank) must collect a separate fee from the payer for any acceptance or processing costs related to the payment methods used, at a rate of 0.68% of the transaction value. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 4(3)) 4. The Payment Service Provider must not change or amend bank fees without obtaining approval from the Ministry of Finance. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 4(4))
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible under this Resolution are: 1. The Minister of Finance, who is granted the following powers: - Determine the final date for stopping the e-Dirham System - Determine the date for transferring the revenue collection mechanism to commercial banks - Amend the value of bank fees in special and justified cases - Issue necessary resolutions to implement this Resolution - Determine the effective date of cancelling and suspending the previous resolutions (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 3) 2. The concerned federal entities linked to the e-Dirham system, who must implement the provisions of this Resolution in coordination with the Ministry of Finance. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 4(1))
How does this law interact with other UAE legislation?
This Cabinet Resolution repeals and cancels the following previous legislation: - Cabinet Resolution No. (4) of 2016 concerning Fees for Services provided in the e-Dirham System, as amended - Any provision that contradicts or conflicts with this new Resolution (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 5)
When did this law come into effect?
The Resolution states that it shall be published in the Official Gazette and shall enter into force as of the day following its publication date. However, the specific effective date is not provided in the text. (Cabinet Resolution Concerning the Federal Government Revenue Collection System, 2022, Art. 6)
Source Documents
This article analyses Cabinet Resolution Concerning the Federal Government Revenue Collection System for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.