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Saudi: No plan to cut VAT rate this year
Riyadh – November 4, 2021:
Saudi Finance Minister Mohammed Al-Jadaan revealed the Kingdom has no plans to reduce the rate of value-added tax (VAT) in the near future. The decision on VAT will be reviewed after several years as and when when the public finances improve.
Saudi Arabia raised VAT from 5 percent to 15 percent in May 2020 as part of austerity measures to deal with the economic repercussions of the pandemic-hit economy.
Al-Jadaan said the goal of the increased rate of VAT was to deal with the economic repercussions of the coronavirus pandemic. “When the public finances improve after several years, most likely within five years, it will be reexamined, but there will be no VAT cut anytime soon,” he said.