Friday 2 October 2020

#SaudiArabia imposes new, lower property tax to shore up sector | Reuters

Saudi Arabia imposes new, lower property tax to shore up sector | Reuters:

Saudi Arabia’s king on Friday issued an order exempting real estate deals from a 15% value-added tax (VAT) and imposed a new 5% tax on transactions as the Gulf state moves to revitalise an economy hit by low oil prices and the COVID-19 pandemic.

The finance minister said on Twitter that the order, carried on state media, also aimed to support Saudi citizens who want to buy homes.

The world’s largest oil exporter is facing a deep recession, with the economy shrinking by 7% in the second quarter and unemployment hitting a record high of 15.4%.

The government had in July tripled VAT to 15% to boost non-oil revenues, but the move has limited domestic demand.

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