Saudi Arabia to remove subsidies for 7 services

The changes include removing tariff protection for 193 items
Saudi Arabia to remove subsidies for 7 services
The King Abdullah financial district is seen illuminated at night in Riyadh, Saudi Arabia, on Monday, April 9, 2012. Saudi Arabias gross domestic product expanded 6.64 percent in the fourth quarter from a year ago, the kingdoms statistics agency said. (Bloomberg)
By Staff writer
Sun 18 Sep 2016 11:40 AM

Saudi Arabia will cut subsidies for seven government services, including removing price-caps on 193 items, according to local media.

Effective from October 2, the 50 percent subsidy that has for years applied to port services, passport fees, car driving license fees, car transfer fees, traffic fines and renewal of residence permits for domestic workers will be removed, while the protection tariffs added to 193 imported items will be removed, Arab News said.

The kingdom is making substantial cuts to state spending to help cope with the prolonged decrease in oil revenues.

In August, the Cabinet approved new charges for municipal services and raised fees for visa and traffic violations in response to orders by the Ministries of Finance, Economy and Planning to boost state revenues.

Under the new charges, a visit visa will cost SR2,000 ($533). However, first-time Umrah pilgrims have been exempt.

A six-month multiple-entry visa will cost SR3,000 ($799), 12-month visa SR5,000 ($1,322) and 24-month visa SR8,000 ($2,132). A transit visa will cost SR300 ($80).

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