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The International Monetary Fund (IMF) has made a number of recommendations to consolidate the Saudi economy, including doubling the rate of VAT rate to ten per cent.
Vast wealth and the promise of dramatic change make for cautious optimism concerning Saudi Arabia, the chief executive…
266 Views | the publication reaches you by | Saudi Arabia TodayHowever the report, released yesterday on Saudi Arabia’s economic well-being, concluded that this was not enough to balance the country’s books and recommended doubling the VAT to ten per cent.
Taxes are expected to be broadened to include sugar-sweetened beverages and e-cigarettes in December.
A VAT increase was one of several recommendations made by the monetary groups to avoid large fiscal deficits. Other measures include “further energy price reforms, increases in the expatriate levies, and allowing the 2018 cost-of-living allowances to expire at end-2019 as planned.”
The Saudi government is also advised to raise water prices to at least “cost recovery levels.”
Noting that the government “wage bill has continued to increase and is high in a global context”, the IMF called for a review of the civil service including the allowances and benefits paid to staff.
The social assistance programme was highlighted as in need of reform. Saudi citizens are said to benefit from free education and healthcare, while pension systems are generous with many people retiring at around 50 years of age.
Better targeting of social assistance programmes was recommended by the monitoring group.
While encouraging programmes that “adequately protect the less well-off” the report said that “better targeting” was needed to ensure fiscal savings.
The project for the design, engineering and procurement of the new 400,000m3/day Jubail II seawater reverse osmosis (SWRO)…
388 Views | the publication reaches you by | Saudi Arabia Today
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The Arab states of the Persian Gulf are the seven Arab states which border the Persian Gulf, namely Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).This excludes the non-Arab state of Iran. All of these nations except Iraq are part of the Gulf Cooperation Council (GCC).
