A little more than two years after the creation of VAT (value added tax) in the kingdom, the Saudis will discover that this tax can weigh very heavy in everyday life. VAT will be tripled from July 1. It will reach 15% of tax-free prices, Finance Minister Mohammed al-Jadaan announced on Saturday.
Read also: The fall of oil and the Covid-19 weaken the Gulf countries
On this same date, another measure will reduce the income of the population: the suspension of payment of the monthly cost of living allowance, a subsidy of around 250 euros created in 2018 at the same time as the VAT and distributed mainly to civil servants. The kingdom hopes to garner 100 billion riyals (24.6 billion euros) from these decisions. In order to mitigate the impact of these austerity measures, the Saudi oil company, Aramco, announced the same day a halving of the price of gasoline.
Unprecedented drop in demand for oil
The government also puts at half mast investment projects developed by Crown Prince Mohammed Ben Salman and intended
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