Saudi Arabia's: finance minister said on Sunday that citizens would not pay taxes on income and Saudi companies would not see their profits taxed under sweeping economic reforms being introduced in the oil-rich kingdom.
The collapse in oil prices after mid-2014 has pushed Saudi Arabia to contemplate a radical overhaul of all parts of its economy, including new taxes, privatisations, a changed investment strategy and sharp cuts in government spending.
Mohammed al-Jadaan sought in a statement carried by state news agency SPA to allay concern that people would be taxed as part of the ambitious reform plan. Saudis currently do not pay any income tax, nor are Saudi companies taxed on their profits.
He also said a value-added tax planned for 2018 would "not be raised above 5 per cent before 2020".
The six Arab monarchies of the Gulf Cooperation Council are aiming to introduce a 5pc value-added tax at the start of next year to raise non-oil revenues. But economists and officials in some countries have said privately that simultaneous introduction in all countries may not be feasible.
That is because of the complexity of creating the administrative infrastructure to collect the tax and the difficulty of training companies to comply with it in a region where taxation is minimal.. Tags: #Saudi #
At least 123 people have been burnt alive and dozens of others injured after an oil tanker caught fire and exploded near Bahawalpur in Pakistan's ... More
Four Arab states that imposed a boycott on Qatar have issued an ultimatum to Doha to close Al Jazeera television, curb ties with Iran, shut a Turkish ... More
Four Arab states boycotting Qatar over alleged support for terrorism have sent Doha a list of 13 demands including closing Al Jazeera television and r... More
The following is a transcript of Kulbhushan Jadhav's 'second confessional statement', as issued by Inter-Services Public Relations. &qu... More
The likelihood that the leader of the militant Islamic State (IS), Abu Bakr al-Baghdadi, has been killed is "close to 100 per cent", Interfa... More
India fired a rocket carrying 31 small satellites into space on Friday, several of them for European countries looking for high resolution earth image... More
A police officer was beaten to death by an angry mob outside a mosque in India-held Kashmir, police said Friday, as tensions in the volatile region ra... More
Saudi women no longer need a man's consent to carry out certain activities, local media reported on Friday. The Arab News said a royal decree i... More
NASA says its planet-hunting telescope has found 10 new planets outside our solar system that are likely the right size and temperature to potentially... More