Monday 11 May 2020
The Kingdom of Saudi Arabia announced several economic decisions to confront the effects of the Corona virus, including stopping the cost of living allowance beginning and raising the value-added tax rate.
The designated Minister of Finance, Economy and Planning, Mohammed bin Abdullah Al-Jadaan, explained that the measures aim to protect the Kingdom’s economy to overcome the unprecedented global crisis of the Corona pandemic and its financial and economic repercussions with the least possible damage, according to the Saudi News Agency “SPA”.
He stated that the government continues to take the necessary decisions to protect citizens, residents and the economy early to reduce the aggravation of the crisis, which led to lower government revenues and pressure on public finances to levels that are difficult to deal with without harming the kingdom’s macroeconomic and public finances in the medium and long term. Economic decisions included stopping the cost of living allowance starting from next June and raising the value-added tax rate from (5%) to (15%) starting from the first of next July.