Saudi Arabia set to reconsider 15 percent VAT rate: Finance minister

Saudi Arabia’s Finance Minister, Mohammed al-Jadaan said that the Kingdom will most likely reconsider the value-added tax (VAT) rate when economic and financial conditions improve.

Previously, Saudi Arabia’s Crown Prince Mohammed bin Salman said that the country’s 15 percent VAT rate is a temporary decision.

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Al-Jadaan said that the VAT rate will be reconsidered when goals are achieved, including an increase in GDP, and an expansion of the economy.

“I repeat once again that we will reconsider the tax issue when the financial situation improves,” al-Jadaan said at the Saudi Budget 2022 Forum in Riyadh.

The Kingdom’s Public Investment Fund (PIF) plans to invest up to 1 trillion riyals ($266.57 billion) in the domestic economy by 2025, Yasir al-Rumayyan, the sovereign wealth fund’s governor said on Monday at the forum.

Saudi Arabia said on Sunday it expected to post its first budget surplus in nearly a decade next year, as it plans to restrict public spending despite a surge in oil prices that helped to refill state coffers hammered by the pandemic.