Saudi Arabia increases VAT to 15%

KSA's Finance Ministry triples VAT in the COVID-19 crisis
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Saudi Arabia increases VAT to 15%

Following measures to support businesses Saudi affected by the virus outbreak worth 120 billion riyals, Saudi Arabia will increase its value-added tax from 5 to 15 per cent in July in further efforts to stabilise the economy.

Starting in June, state and military employees can no longer expect a cost of living allowance, a bonus that had been offered by King Salman bin Abdulaziz Al Saud for the past two years.

According to Saudi's Finance Minister Mohammed Al Jadaan, the government has been forced to cut expenditures and introduce measures to support stability of non-oil revenues.

Spending for a number of Crown Prince Mohammed bin Salman's Vision 2030 projects has also been reduced.

Saudi Arabia has reported more than 39,000 confirmed cases of COVID-19, the highest in the Arab world. It recorded 246 deaths.

Photo: Hala Alghanim for Unsplash