DUBAI: Saudi Arabia’s acting information minister yesterday said the kingdom could review its VAT increase after the coronavirus pandemic ends, a move which may spur economic recovery after the tax increase boosted inflation.
Saudi Arabia tripled value-added tax to 15 per cent in July to offset the impact of lower oil revenue on state finances.
“This decision is like any other decision, it can be revised God willing when this crisis is over,” Majid bin Abdullah Al Qasabi told reporters at a news conference, referring to the global pandemic.
The decision to triple VAT earlier this year was a “painful” one, Qasabi said in a news conference.
“As his highness the Crown Prince said in his speech a few days ago, the decision to increase the VAT was a very painful decision.”