Saudi Press

Saudi Arabia and the world
Wednesday, Feb 08, 2023

Saudi economy minister hails Kingdom’s VAT rise ‘success’ during pandemic

Saudi economy minister hails Kingdom’s VAT rise ‘success’ during pandemic

Saudi Arabia is one of only a few countries that successfully raised its value-added tax rate during the COVID-19 pandemic, a government minister said on Thursday.
The Kingdom increased VAT from 5 to 15 percent in July 2020 without damaging its economic growth, Minister of Economy and Planning Faisal Alibrahim said at the World Economic Forum in Davos.

“We look at simplifying tax revenues and utilizing them in a way that was never done before, but not at the expense of economic growth or economic development,” he said.

Speaking on a panel that discussed whether efforts to reform global tax systems were stalling, Alibrahim said Saudi Arabia “broadly supports” global tax reforms, such as those tabled by the Organization for Economic Cooperation and Development.

Almost 140 countries agreed to sign up to the OECD tax reform deal in October 2021, which aims to ensure multinational firms pay their fair share of corporate tax and prevent climate tax evasion.

Its two main pillars give countries taxing rights on digital profits and set a universal minimum corporation tax rate of 15 percent. The first is expected to generate between $13 billion and $36 billion in annual revenue for countries involved and the second about $220 billion.

Alibrahim said that despite some minor issues, the Kingdom regarded the OECD’s reform efforts as a “step in the right direction” as they were “underpinned by fairness.”

“This will push governments to think about true fundamentals of competitiveness and competition at the same time,” he said. “This will drive productivity and competitiveness, it will take us away from the environment that had that ‘race to the bottom’ focus on fiscal incentives.”

He added: “We have to make sure everyone is at the table, and listen to everyone and voices are heard. One thing we learned from the past seven years is collaboration does yield results.”

He said it was also important that countries adhered to the time frame for the implementation of the OECD agreement, which was set as the start of 2024.

Related Articles

Saudi Press
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
Shell reports highest profits in 115 years
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Saudi FM discusses Kingdom’s economy, oil, Iran and US ties in Davos
Israelis rally in three cities against Netanyahu legal reforms
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Saudi Arabia plans to use domestic uranium for nuclear fuel
Mohammed Bin Salman chosen most influential Arab leader of 2022
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
United Arab Emirates says it will teach Holocaust in schools
Saudi Arabia set to overtake India as fastest-growing major economy this year 
International medical experts speak out against COVID-19 restrictions on China
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Almubarak named ‘The Best Central Bank Governor of the Year 2023 for the Middle East’
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Dubai announces $8.7 trillion economic plan to boost trade, investment and global hub status
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.