Team formed to study impact of VAT hike on industries, Al-Khorayef

Minister of Industry and Mineral Resources Badr Al-Khorayef is seen during the webinar.

A working group with the FTA formed to deal with the impact of an increase in VAT on industrial entities; Minister of Industry and Mineral Resources Badr Al-Khorayef said on Thursday.

He also said that the increase in VAT will create a problem; while importing goods from the Gulf markets due to the difference in the VAT rate. Therefore, a proactive action is required by studying international practices before its implementation.

Initiatives–Challenges

During a webinar entitled “Initiatives – Challenges” organized by the Eastern Province Chamber via video conferencing on Thursday evening; Al-Khorayef said that the Ministry is constantly working to evaluate and address all the challenges facing the industrial sector in various parts of the Kingdom.

He also added that that the coronavirus (COVID-19) crisis gave the industrial sector several gains; including the need for industries to meet their needs in the health, medical and food domains.

He asserted that the national industries have proved to be highly efficient during the crisis, most significant of which is their reliable and excellent supplies.

Radical changes

Al-Khorayef said that the coronavirus crisis will usher in radical changes in various concepts of global trade, reshaping the world economy radically, which will be positively reflected on the development of local industries in general.

He stressed that the Kingdom is one of the best countries in the world in managing this crisis under the directions of King Salman and Crown Prince Muhammad Bin Salman.

He disclosed that there are plans to assign the Saudi Industrial Development Fund (SIDF) to monitor and quickly feel the pulse of industries most impacted by the current conditions and are on the verge of bankruptcy or exit from the market. The objective is to provide them with assistance. The minister pointed out that mergers and acquisitions are among the options offered to factories.

He disclosed that the ministry is studying stopping the export of waste paper and recyclable cartons so as to protect the national industries amid the COVID-19 pandemic.

The Ministry of Industry is working in cooperation with the National Waste Management Center. This is to study the feasibility of recycling of paper and other products; with the objective of increasing their value economically. Besides, working on proposals and suggestions for drafting policies and legislations to stop the export, the minister stressed.

He also added that the ministry is ready to study exempting factories under construction; from payment of privatization fees during the current period.

The minister drew attention to the fact that the ministry launched an initiative earlier. This is to postpone the installments for these factories for a period of six months.