MON, MAY 11 2020-theG&BJournal- Saudi Arabia today announced a sharp 15% increase in value added tax (VAT) and suspended allowances paid as cost-of-living allowances. The new measures were announced by the Finance Minister Mohammed Al-Jadaan.
The measures are key fiscal measures taken to cushion the impact of the coronavirus pandemic.
The increase in VAT, previously 5%- will be effective from the beginning of July 2020. The halt in cost-of-living allowances will take effect from June 2020.
According to agency reports quoting the Finance Minister, the measures are part of efforts to shore up state finances impacted by not only the coronavirus pandemic but also falling global oil prices.