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Saudi Arabia to reconsider VAT upon GDP growth
Riyadh- May 4, 2021:
The Kingdom of Saudi Arabia will reconsider value-added tax (VAT) after it has achieved certain objectives related to its economy and economic growth, a senior official has said.
The decision to increase VAT from 5 % to 15 % from July 1, 2020 was taken by the Saudi government in response to the economic impact of Covid-19 and the decline in revenues from lower oil prices. The Minister of Finance Mohammed Al-Jadaan has said that tripling value-added tax (VAT) to 15% was the best among the tough choices the government took during 2020.
He affirmed that taxes are an essential part of non-oil-dependent countries, indicating that the government’s goal is to expand the economy to reduce the economic burden, off the shoulders of their nationals or the private sector.
“Saudi Arabia will reconsider the value-added tax upon achieving certain objectives, such as the Kingdom’s gross domestic product (GDP) growth, economic broadening, and a steady rise in oil price,” Al Jadaan said.
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