Saudi Arabia has made “painful” decisions to triple the value-added tax (VAT) and suspend housing allowances for government employees to revive its corona-infected economy. Saudi Arabia’s revenues have declined due to global epidemic and lower oil demand and prices in international markets. Notably, the country is one of the largest oil exporters. Saudi Arabia introduced the VAT two years ago to reduce its economy’s dependence on global crude oil markets. The emergency plan is expected to raise 26.6 billion. Finance Minister Mohammed al-Jadan said in a statement: “These measures are painful but necessary to achieve financial and economic stability in the medium and long term.” COVID-19: Saudi Arabia to cut salaries by 40% He also said that under the government’s austerity drive, the expenditure of some institutions was being “suspended, postponed or extended”. The costs of the Vision 2030 reform program has also been cut down. A committee has been formed which will review the incentives available to government officials and contractors within 30 days and give its recommendations. According to John, a University of Cambridge professor, “In a major economic crisis, tripling VAT to balance income and expenditure will be a test. These are austerity measures to increase revenue, … Continue reading Saudi Arabia triples VAT to deal with pandemic