Ministry of Finance in Saudi Arabia has announced that there will be an increase in VAT (Value Added Rate) to cope-up and counter the economic implications due to COVID-19 in KSA.
As per the announcement VAT (Value Added Tax) in Saudi Arabia will be increased from 5% to 15% starting July 2020.
Ministry has tripled the amount from 5% to 15% to balance the economical condition in the country.
Along with this Ministry also announced stopping of Cost of living allowances for public sector workers starting June this year.
Increase in VAT (Value Added Tax) from 5% to 15% in KSA
These measure are into place to mitigate the negative effects of the pandemic crisis from a health as well as economical perspective.
The Government has also cut down few project budgets from it Vision 2030 and due the dip in Oil Prices which is the main source of revenue and economic growth government has to take the above measures.
The government has also taken some measures to reduce the expenditure amounting to SR100 billion which include a number of Vision Realization Programs and major projects for the fiscal year 2020.
Not Only Saudi Arabia but many of the countries are facing economical imbalance due to Corona virus.
So, those who have money and assets please don’t waste it unnecessary on unwanted things and save it. If you want to spend, at-least spend it people who are in need or give it to charity as future times may bring economical imbalance.
Allah is the only savior and Insha Allah he does the best.