Money & BusinessSaudi Arabia

Saudi Arabia likely to cut VAT rate

Saudi Arabia will “ultimately” consider cutting the rate of value-added tax (VAT), which was increased to 15 percent in 2020, Minister of Finance Mohammed al-Jadaan said on Tuesday.

The VAT rate was tripled then to shore up finances hit by low oil prices, as the pandemic hit global demand.

“We will ultimately consider cutting the VAT but at the moment we are still replenishing the reserves,” he said. Saudi Arabia’s policy on fiscal sustainability would ensure that reserves do not fall below a certain percentage level of the country’s gross domestic product, Jadaan added.



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