Riyadh – Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said on Monday; that the Kingdom would most likely reconsider the value-added tax (VAT) rate as soon as the economic and financial conditions improve.
The point of reconsideration the minister meant would be when the government’s goals are achieved; by increasing gross domestic product (GDP) and expanding the economy. “I repeat once again that we will reconsider the tax issue when the financial situation improves,”
You may also like to read about : VFS Global in the Kingdom of Saudi Arabia
Al-Jadaan said at the Saudi Budget 2022 Forum in Riyadh, the Al-Arabiya channel reported. Earlier, Crown Prince Muhammad Bin Salman said that the country’s 15 percent VAT rate is not a permanent decision.
Al-Jadaan hinted at the privatization of more sectors in the future. “This will include sectors education, health, and sports; and additionally certain projects in the Ministry of Interior and the industrial sector. The government’s goal in this regard is to give the private sector all the tasks that it can perform,” the minister told Al-Arabiya.
Al-Jadaan said the new budget methodology does not set future expectations for oil prices. However, he noted that the classification of budget revenues changed after the listing of Saudi Aramco.
The dividends of the Public Investment Fund (PIF) for the budget, as obtained by the 2020 budget, were not repeated during the current year, he said while stressing that there is no intention to transfer additional funds from the Central Bank to PIF.