Saudi Arabia says to introduce VAT in two years

Finance minister quoted as saying value added tax in Gulf kingdom will be set at around 5%

Saudi Arabian finance minister Ibrahim Alassaf said the kingdom expects to introduce value-added tax in two years, aiming for a tax rate of around 5 percent, the Saudi-owned Al-Hayat newspaper reported on Wednesday.

"VAT will be introduced gradually and be completed within two years, which is the time set for application in GCC (Gulf Cooperation Council) countries in 2018. It will be around 5 percent, which is the lowest worldwide," Alassaf was quoted as saying.

In its 2016 state budget announcement earlier this week, the ministry said it planned to introduce VAT in coordination with other countries in the region.

Younis Haji al-Khouri, undersecretary at the United Arab Emirates ministry of finance, told reporters earlier this month that the target for introducing the tax in the region was three years. The International Monetary Fund has suggested the UAE consider imposing VAT at a 5 percent rate.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Kuwait's anti-austerity lawmakers threaten reform plans

Kuwait's anti-austerity lawmakers threaten reform plans

New lawmakers say they are determined to protect basic services...

Power to the people in Saudi Arabia

Power to the people in Saudi Arabia

As Saudi Arabia fights to control surging electricity demand...

RAK to the future: Forging a reputation on the global business stage

RAK to the future: Forging a reputation on the global business stage

Ras Al Khaimah, the UAE’s second-smallest emirate, is quietly...

Most Discussed
sponsoredTracking