Saudi Arabia Banks in $4.5 Billion Settlement Over Islamic Taxes - Bloomberg:
Major banks in Saudi Arabia reached settlements worth a combined 16.7 billion riyals ($4.5 billion) with the kingdom’s tax authority over a religious levy the lenders had been kicking against.
The deals come as the world’s largest crude exporter predicts a budget shortfall of 131 billion riyals, or 4.2 percent of gross domestic product, for 2019. The deficit was worsened as the nation boosted spending and extended benefits for government employees worth billions of dollars. The tax authority had extended the 2.5 percent religious levy, known as the Zakat, by including items that were previously exempt, while eliminating some deductions.
Al Rajhi Bank was hit with the highest payment, agreeing to pay 5.41 billion riyals, the lender said in a statement posted on the Saudi Stock Exchange. Alinma Bank didn’t pay any settlement and said in a separate announcement that there will be a credit balance with the authority.
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