Minister of Finance Mohammad Al-Jadaan said that there is no plan at present to reconsider the Kingdom’s value-added tax (VAT) policy in the short and medium term.
The Saudi government hiked the VAT rate from five percent to 15 percent effective from July 1, 2020, as part of additional measures taken to offset the economic impact of the coronavirus crisis due to the decline in government revenues resulting from low oil prices, reduced economic activities and increased cost of healthcare services.
Addressing a joint press conference with Minister of State, Member of the Cabinet and Saudi Arabia’s G20 Sherpa Dr. Fahd Almubarak, at the end of the G20 Summit on Sunday; Al-Jadaan said that the Kingdom presented initiatives worth more than SR200bn. This is to confront the repercussions of the coronavirus pandemic.
Coronavirus vaccine for everyone
“Many international institutions are coordinating measures to ensure the provision of coronavirus vaccine for everyone. G20 stood in the face of the challenges with its utmost keenness. This is to provide essential support to major global institutions,” he said.
According to Al-Jadaan, the G20 summit’s final communiqué approved unanimously by all member countries, but Turkey wanted its “voice to be heard.”
“Turkey, without a doubt, as Crown Prince Muhammad Bin Salman explained, wanted to make sure hearing its voice, and we agreed. With regard to statement itself, everyone agreed, including Turkey,” he pointed out.
Speaking to reporters, Dr. Almubarak also considered Riyadh’s initiative to reform the World Trade Organization; as one of the most prominent achievements of the Kingdom’s summit presidency.
“The G20, under the presidency of Saudi Arabia, has launched several initiatives that will help fight corruption in the economy.
“The group framed a number of principles to review the foundations of global trade. Adding that there were also three meetings of G20 commerce ministers in the current year”.