Saudi Arabia to triple value added tax Financial difficulties due to low oil prices May 11 19:31
Saudi Arabia, the oil-producing country, has announced a policy to triple the value-added tax, which is the consumption tax in Japan, because the record low oil prices have significantly reduced the national revenue, and the financial predicament has become clear. I will.
Saudi Arabia's Ministry of Finance issued a statement on November 11 through state-owned communications, stating that crude oil prices were sluggish due to a drop in global demand and the country's revenues were significantly reduced, while the spread of the new coronavirus continued He said that he would take new measures to stabilize his finances, assuming that the burden of expenses and other costs would increase.
Specifically, since July, the VAT, which is the Japanese consumption tax, has been tripled at once from the current 5% to 15%, and the implementation of public works projects has been postponed. It includes a policy of reducing the amount by 2.8 trillion yen.
Saudi Arabia has maintained an absolute monarchy with a high welfare policy that does not collect income tax from rich oil income and basically free medical expenses, but this VAT increase is directly It puts a strain on the financial burden and makes the financial situation clearer.
Investors are worried about the decision, which could lead to further slump in consumption and accelerate the economic downturn.