Saudi Arabia forced to introduce taxes as oil revenues plummet
Saudi Arabia residents have long enjoyed a tax-free existence supplemented by heavy subsidies on some products. With the steep decline in oil prices and revenues this is all changing.
|Last June, the Saudi government agreed with the six-member Gulf Cooperation Council(GCC) to levy a 5 percent tax on certain goods. The GCC countries have already agreed to implement selective taxes on tobacco, and soft and energy drinks this year. The decline in oil revenue has led the Saudis to attempt to broaden its investment base so that it will rely less on oil revenue in the future.|