Saudi Arabia prepares refoundation of the State seeking 88 billion – Magazine Saturday

Saudi Arabia prepares refoundation of the State seeking 88 billion

The creation of a consumption tax, the taxation of energy drinks and luxury goods, and a reform of state subsidies. These are some examples of measures that Saudi Arabia wants to implement in order to grow the revenues that do not come from oil.

9:24 • Business

By André Tank Jesus – Business Journal

Saudi Arabia is preparing a fiscal revolution. After several decades of dependence on oil, the low price of raw materials has forced the Crown Saudi plan the implementation of historic measures such as the creation of a consumption tax or a special tax on luxury goods. The aim is that by 2020 will be achieved, at least another 100 billion, or EUR 88 billion in annual revenues.
The budget for 2016 was presented by Saudi Arabia last week. The document sinned by lack of details, but it was possible to see that there would be changes. The spending cuts and the revaluation of investment projects, the Saudi government also wants to reform state subsidies, implement a value-added tax, and taxing energy drinks and luxury goods.
Purpose, you know It has now, is to achieve additional revenue of at least 100 billion from 2020. the amount was revealed by prince Mohammed bin Salman in an interview with Bloomberg, who had already advanced to 1 April, the Saudi plan Arabia to create a sovereign fund, in order to manage and boost the country’s wealth.
“it’s a great software package that seeks to restructure some sectors generating revenue,” the prince told Bloomberg. In a country where there is no income tax, as the IRS – something that is not expected to change – the non-oil revenues grew from 35% in 2015 to 44 billion dollars
Creating a. consumption tax, similar to VAT practiced in Portugal, will generate revenues of 10 billion dollars annually, also showed Mohammed bin Salman told Bloomberg. Already known was to privatize part of the Aramco oil, but the prince of Saudi Arabia added that the government plans to raise debt to finance expenditure, being in the pipeline an issue in dollars this year.

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