DAMMAM – No income tax will be imposed on Saudi citizens and no tax will be levied on Saudi companies’ profits, Minister of Finance Muhammad Abdullah Al-Jadaan said on Sunday during an open meeting with Eastern Province businessmen.
Minister of Commerce and Investment Dr. Majed Bin Abdullah Al-Qasabi also took part in the interactive session.
The open meeting was hosted by Asharqiyah Chamber of Commerce and Industry and moderated by the Deputy Chairman of the Board of Directors of the Chamber Muhammad Bin Saad Al-Farraj.
Al-Jadaan said the financial dues owed to contractors, suppliers and importers will be paid within a maximum period of 60 days from the date the entitlements are due.
He said during the years 2015 and 2016, the Kingdom laid down many financial and economic policies and implemented a number of measures that are in tandem with the policies of the biggest economies of the world, like partially reforming the prices of energy products, amending some government fees and stopping several allowances so as to review them and divert them to those who deserve them.
He pointed to the success achieved by the program for the issuance of international bonds with the increasing global demand that exceeded $50 billion.
He further said that to reach the goals of Vision 2030, the nonoil private sector must grow by 8.5 percent annually and the sector’s GDP must increase by SR1.6 trillion.
He drew attention to the fact that the approach of the coming stage will be to adopt stable policies as a vision for the stage. Therefore, no backdated policies will be issued. The private sector will be supported through incentive packages estimated at SR200 billion within the coming four years.
Commerce and Investment Minister Al-Qasabi stressed the role of the private sector in achieving Vision 2030.
By the year 2030, the Ministry of Commerce and Investment aims to raise commerce and investment in the Kingdom to the top ten in the global competitiveness index. The Kingdom should become one of the most important 15 economic systems in the world, Al-Qasabi stressed.
Foreign investment will be increased from 3.8 to 5.9 percent of the GDP. The contribution of SMEs in the GDP will be increased from 20 to 25 percent.
The ministry is developing the regulations and bylaws so that they attract more global investments and are competitive globally. The ministry is striving to bolster competitiveness, improve business environment and develop SMEs, apart from developing national industries and services.
The aim is also to implement privatization and raise the awareness of the consumer and trader together.