William Jackson, senior emerging markets economist at Capital Economics, told CNBC Thursday that the move was likely to be a response to low oil prices, which have more than halved since last June from $114 a barrel then to currently trade at $50 a barrel for benchmark Brent crude.
"I think (the move to introduce new taxes) is very much to do with the low oil price," he told CNBC Thursday. "As with the rest of the Gulf, the UAE has relied on oil revenues to finance government spending but now it is likely to run a fiscal deficit."
Jackson said that although there was no immediate pressure to introduce these taxes -- particularly as many Gulf states have large sovereign wealth funds amassed over the years from the proceeds of oil exports -- the UAE was looking ahead and mitigating the risks of a low-price oil outlook.
"The UAE is showing itself to be the government in the Gulf that is most serious about finding ways to improve its fiscal position," Jackson said.
"Last month, they deregulated fuel prices and took away subsidies on fuel, a serious sign that they want to improve their fiscal position and make fiscal reforms."
Jackson also said that the move showed the UAE was following the advice of the International Monetary Fund (IMF) and other organizations which have recommended that the emirate set VAT at or around, 5 percent.
In a report published earlier in August, the IMF said that the UAE's "economic outlook is expected to moderate amid lower oil prices" and that the country was likely to run a deficit in 2015, making raising tax revenues a moot point.
"The overall fiscal balance this year is expected to turn negative for the first time since 2009 to record a deficit of 2.9 percent of GDP, but is expected to return to surpluses from 2016."