Saudi Arabia’s Finance Minister vows a review of the VAT rate. Finance Minister Mohammed Al-Jadaan says that government will reconsider the rate once its financial position recovers.
Saudi Arabia’s VAT rate increased by a considerable margin in 2020. Declining oil prices and Covid’s effect on the economy were both contributing factors to the increase. “These measures are painful but necessary to maintain financial and economic stability over the medium to long term,” Al-Jadaan said at the time.
A number of businesses will welcome the reassurance, as the finance minister previously ruled out an immediate VAT rate cut. However, there is still no clear timeline on when the rate will be readjusted.
Source VATit
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