Due to an increase in the budget deficit as a result of falling oil profits, the country’s authorities decided to increase taxes.
Saudi Arabia since June 1 has suspended the payment of a living wage. writes Reuters. And from July 1, the value-added tax will be tripled from 5% to 15%.
According to the Minister of Finance of the country Mohammed al-Jadaan, such measures are painful, but necessary, since the country’s expenses exceed incomes. The budget deficit in the first quarter amounted to nine billion dollars.
The minister said that non-oil revenues were affected by a decline in economic activity, while spending rose due to unplanned pressure on the health sector and initiatives taken to support the economy.
It was previously announced that Saudi Aramco raises oil prices in June for all markets, including Asia, the US, and Europe.