"There is danger from all men. The only maxim of a free government ought to be to trust no man living with
power to endanger the public liberty." - - - - John Adams

Tuesday, January 2, 2018

Water and Food to be Taxed

When our King raised taxes
we overthrew the monarchy

Saudi Arabia and the United Arab Emirates have introduced a five percent value-added tax (VAT) on many goods and services in an attempt to raise budget revenues amid a global slump in oil prices.

The two Gulf countries had long prided themselves on being minimum tax havens fueled by energy export, but the downturn in the oil market has forced them into taking measures to tackle their huge budget deficits. The two Arab kingdoms will receive up to an estimated $21 billion from the new tax in 2018, equivalent to 2.0 percent of GDP.

The imposition of VAT will help to raise tax revenues of the Saudi government to be utilized for infrastructure and developmental works,” said Mohammed Al-Khunaizi of Saudi Arabia’s Shoura Council, as quoted by Arab News.

The VAT will apply to most products and services, including food, clothing, jewelry, electronics, phone, water and electricity bills, and hotel room bookings. Exceptions include air travel, healthcare, basic surgery and state-funded education. At five percent, the tax is still among the lowest in the world, but the Saudi Ministry of Commerce and Investment announced it will launch inspections to check which businesses don’t comply.

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nordberg Simpson said...

really ?!
who wonder that ?
over here in my own taxhellish country we do that since the walls of Jerichoh came tumbling down

nordberg Simpson said...

they are in a lavish hotel , on probation alternative house arrest , i read today