The levy on expatriates in Saudi Arabia will continue next year. There will be no change in the value added tax which has been tripled. The decision comes amid a sharp rise in the budget deficit due to Kovid. The fall in oil prices and lower non-oil revenues have affected the economy.
The Saudi Ministry of Finance is preparing the budget for next year. Revenue fell sharply because of Kovid. Costs, on the other hand, have doubled. With this, the expected budget deficit for this year is 298 billion riyals. It is trying to reduce this in the next financial year.
The target is to reduce the budget deficit from 298 billion to 145 billion riyals. The impact that Kovid will have on revenue next year will continue. Oil revenues have plummeted. Non-oil revenues also declined due to the coup. The value added tax or VAT has been tripled to increase revenue.
VAT is now 15 per cent. That will continue next year. There will be no change in the levy levied on expatriates. The Ministry of Finance expects revenue to grow by nine per cent next year. Levy and VAT are likely to be revised further as oil prices rise and the crisis moves on.
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