Saudi Crown Prince "KSA has no Plans to Introduce Income Tax"

  • Publish date: Wednesday، 28 April 2021
Saudi Crown Prince "KSA has no Plans to Introduce Income Tax"
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Saudi Arabia’s 2030 vision is to reduce its independence on oil, diversify its economy, and develop public service sectors such as health, education and more.

In light of the 2030 vision, Crown Prince Mohammed bin Salman has acknowledged increasing home ownership and falling unemployment as two signal achievements, ruled out introduction of income tax and described the current 15 percent value-added tax (VAT) as a temporary measure, said on a Saudi TV show.

Saudi Arabia has increased VAT to balance the impact of lower oil revenue on state finances in a move that had shocked citizens and businesses expecting more support from the government during the coronavirus pandemic.

"Raising VAT was a painful measure and I hate to hurt any Saudi citizen, but it is my duty to build Saudis a long-term sustainable future," the prince said in an interview aired on Saudi TV to mark the fifth anniversary of Vision 2030.

"Raising VAT to 15% is a temporary decision that will last one to five years and then it will go down to between 5% to 10%," he added.

Prince Mohammed also said the kingdom aims to reduce unemployment to 11% this year. Unemployment among Saudi citizens fell to 12.6% in the fourth quarter of 2020 from 14.9% in the third quarter.

The government has been pushing through economic reforms since 2016 to create millions of jobs and reduce unemployment to 7% by 2030.

The plans were disrupted by the coronavirus crisis that sent oil prices plummeting last year.

Image Source: WAM