The measures come as the country steps up plans to slash government spending. FMTNews Arabia
RIYADH: Saudi Arabia’s finance minister on Monday said the kingdom will triple its Value Added Tax and halt monthly handout payments to citizens in new austerity measures amid record low oil prices and a coronavirus-led economic slump.
Jadaan insisted the measures were necessary to shore up state finances amid a “sharp decline” in oil revenue as the coronavirus pandemic saps global demand for crude. Saudi Arabia, the top crude exporter and the Arab world’s biggest economy, has shut down cinemas and restaurants, halted flights, and suspended the year-round umrah pilgrimage in a bid to contain the deadly virus.
He said the world’s leading crude exporter would borrow close to US$60 billion this year to plug a huge budget deficit.The International Monetary Fund in April projected that the Saudi economy would contract by 2.3% this year.
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