58658
End of Tax-Free Living in Saudi Arabia
End of Tax-Free Living in Saudi Arabia

End of Tax-Free Living in Saudi Arabia

End of Tax-Free Living in Saudi Arabia

Saudi Arabia has introduced a value-added tax with the approval of the International Monetary Fund, indicating the end of life without VAT across the (Persian) Gulf Cooperation Council states.
The decision was taken on Monday and implies a 5% levy on some goods across the six-member (P)GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE). Other Arab countries are also expected to follow and introduce the VAT system by the beginning of 2018, RT reported.
The move has IMF backing, which recommended the (P)GCC states impose revenue raising measures. The countries have already introduced taxes on tobacco and fizzy drinks. “A royal deecree has been prepared,” the official Saudi Press Agency said.
The tax on tobacco, now at 50%, will be increased to 100%, the same level as those for energy drinks and sodas. Residents of the region had enjoyed the tax-free period before the oil prices more than halved. The price of a barrel of crude oil fell from over $114 in 2014 to just over $55 currently.
Last year, the world’s largest crude exporter announced some austerity measures. Saudi Arabia froze major infrastructure projects, slashed ministers’ salaries and imposed a wage freeze on civil servants. Riyadh managed to reduce the budget deficit from a record $98 billion in 2015 to $79 billion last year.

Short URL : https://goo.gl/tDulnX
  1. https://goo.gl/qMZ0Yw
  • https://goo.gl/xBHjRP
  • https://goo.gl/pxymY9
  • https://goo.gl/TEZzgn
  • https://goo.gl/duvD0H

You can also read ...

More and more people in Europe are now able to find a job.
The European Commission published its yearly report on Labor...
European Equities Hit Pause Button
Europe’s major stock markets paused on Tuesday as investors...
Goldman Offers Buyback, Dividend Details
Goldman Sachs Group Inc offered investors a window into its...
Kenya’s debt is currently at $38.7b.
Kenya’s rising debt is set to hit 60% of gross domestic...
US Industrial Output Picks Up
US industrial output rose in September as the effects of...
Economic recovery will be key to bringing down the jobless rate of 21%.
Greece’s economy fell into recession again last year,...
Algeria Worst Country in Economic Freedom
Algeria is one of the worst countries in the world for...
In Southeast Asia, the Philippines is seen leading with GDP growth at 6.6% this year and 6.7% in 2018.
The IMF’s latest “Regional Economic Outlook” report paints a...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus