Saudi crown prince says, Kingdom has no plan to introduce Income tax

Web DeskWeb Editor

28th Apr, 2021. 03:17 pm
Saudi crown prince says, Kingdom has no plan to introduce Income tax

Saudi Arabia has no plans to introduce an income tax, and the 15% triple value-added tax introduces last year in July was temporary, said Saudi Arabian Crown Prince Mohammed Bin Salman in a recent TV interview on Tuesday.

This decision has made shocked the citizen of the Kingdom and it also affects the businesses who had expected the government to provide more assistance during the coronavirus pandemic and the Kingdom had tripled VAT to offset the effects of lower oil revenue on the state finances.

The interview marks the 5th anniversary of Vision 2030, which aims to diversify Saudi Arabia’s economy without reliance on oil.

“Raising VAT was a painful measure and I hate to hurt any Saudi citizen, but it is my duty to build Saudis a long-term sustainable future,” the prince said

Furthermore, he said: “Raising VAT to 15% is a temporary decision that will last one to five years and then it will go down to between 5% to 10%,”

Prince Mohammed stated that the kingdom’s goal for this year is to reduce unemployment and improve productivity to 11%. Saudi citizens’ unemployment rate dropped to 12.6% in the fourth quarter of 2020, back from 14.9% in the three months.

“This step was painful for me personally because I do not want to affect Saudi citizens in any manner. My responsibility is to guarantee and build the future of Saudi citizens in the long term, for the next 20-30 years,” the crown prince concluded

Since 2016, the Saudi government has aimed for economic reforms with both the aim of creating millions of jobs and reducing the unemployment rate to 7% by 2030.

Last year’s plans were disrupted by the coronavirus outbreak, which caused oil prices to collapse.

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