Coronavirus forces Saudi Arabia to triple VAT, suspend living allowance

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Coronavirus forces Saudi Arabia to triple VAT, suspend living allowance
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A major oil producer and exporter, Saudi Arabia, has announced that its Value Added Tax (VAT) will increase from 5 to 15 per cent in July. Also, as from June, living allowance, ordered two years ago for state and military employees, would be suspended. The Finance Ministry made the measures public on Monday. They are

A major oil producer and exporter, Saudi Arabia, has announced that its Value Added Tax will increase from 5 to 15 per cent in July.

Also, as from June, living allowance, ordered two years ago for state and military employees, would be suspended.They are part of moves to support the economy as the coronavirus pandemic dwindles revenue. Mohammed al-Jadaan, Finance Minister, explained that government’s decision was to support stability of non-oil revenues.Saudi Arabia is also planning to slash allocations for the Vision 2030 project envisioned by Crown Prince Mohammed bin Salman .

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