Saudi VAT rate will rise to 15% on July 1, 2020,安博国际财税（深圳）有限公司

Saudi VAT rate will rise to 15% on July 1, 2020

Author：安博国际财税（深圳）有限公司 Click： Time：2020-05-11 09:24:03

Saudi Arabia suspended subsistence subsidies and raised value-added tax to reduce the economic impact of the novel Coronavirus

“Saudi economy took a hit after oil prices fell"
The Saudi Minister of Finance and Acting Minister of Economy and Planning, Mohammad Aljadaan, stressed that if the government did not take measures to mitigate the economic impact of the outbreak, it would have an extremely negative impact on the performance and stability of public finances.

After the oil price, the epidemic has made the Saudi economy worse

The Saudi state news agency on Monday announced two key government decisions: the suspension of living allowances to residents from June 1, and the increase in value-added tax from 5 percent to 15 percent, effective July 1.

Falling oil demand, a sluggish economy and rising spending have forced the Saudi authorities to take two steps

1) Reduced Government Expenditure The projected reduction in expenditure is approximately Sat 100 billion, including the cancellation, extension or postponement of certain operating and capital expenditures of certain government agencies, the reduction of allocations for some fiscal year implementation plans and major projects.

2) In addition, the cost-of-living allowance will be terminated from June 2020 and the VAT will be increased from 5% to 15% with effect from July 2020. (The cost-of living allowance, which began in 2018, paid Saudi citizens about 1,000 riyals a month in response to price increases that followed a 5%VAT increase at the time.)

Moreover, in order to improve the efficiency of expenditure, the Government had established a ministerial committee to study the payment of financial subsidies to all employees, contractors and employees of similar status in government ministries, agencies, agencies, centres and schemes not subject to the Civil Service Act and to take a decision within 30 days.

Long by picture save/share

Saudi VAT rate will rise to 15% on July 1, 2020

分享至微信分享