DED's Initiative to Support Private Sectors With 50% Reduction on Fines

Posted By Admin   -   Posted On January 01, 2019

The Commercial Compliance and Consumer Protection (CCCP) sector of the Department of Economic Development (DED) announced that it would sustain an automated facility for business owners to avail themselves of a 50% reduction on commercial fines.

The proclamation is in line with the declaration of 2019 as the Year of Tolerance by H.H. Sheikh Khalifa bin Zayed Al Nahyan which embodies the DED’s efforts to improve global competitiveness and ease of business. The initiative is also expected to support private sector entities to cope with challenging business conditions.

Mohammed Ali Rashid Lootah, CEO of Commercial Compliance and Consumer Protection at Dubai's Department of Economic Development, stated that more than 4,650 fine settlement requests were received in 2017-18 under the previous system.

For the past two years, an AED 23.4 million worth of fines were waived off under the facility for businesses in Dubai.

Lootah said, “The automatic fine settlement facility will contribute to enhancing happiness in Dubai and the emirate’s position across global competitiveness indicators.”

The system will make it smoother and faster for eligible business owners who will benefit from the government’s fine waiver programme.

In order to support the local economy’s development, Dubai had announced various measures over the last couple of years for different sectors, including the reduction of municipality fees, freezing of hikes in education fees, decrease on new licences fees and reduction in licence fees by the emirate's free zones, among many others.

According to the DED, the 50% reduction is only applicable to fines issued for the first violation in a calendar year.

As per the new facility, as soon as a commercial violation is entered in the system, the trader receives a text message with an automatic reduction of 50% in the fine. Previously, a customer would have to request a settlement, and the trader would have then to wait for verification from the system on eligibility for any reduction in fines.

"The net value of fines settled under the 50% reduction in 2017-18 was AED 23.4 million. We believe that the new automated system will be smoother and more flexible as it will automatically adjust the fines and benefit more business owners," Lootah stated, adding that the DED’s automatic fine settlement facility will contribute to boosting business happiness in Dubai and its position across global competitiveness indicators.

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