Saudi Gazette report

RIYADH — Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan has said that there is no change in the value-added tax (VAT) or the levy for expatriate workers at present.

In an interview with Al-Arabiya Television, Al-Jadaan stated that there is a decline in the impact of oil price volatility on the state budget and that the distribution of the 2022 budget surplus will take place only after the end of the fiscal year.

“No portion of this year’s surplus will be used to repay public debt. The Public Investment Fund has sufficient liquidity and assets while SAMA’s reserves increased by about SR50 billion in 2022,” he said.

Regarding project spending, Al-Jadaan said: “We have spent about SR30 billion on major projects in 2022, and we will continue to spend similar amounts on major projects in 2023 and 2024.”

The minister noted that the tax burden on the private sector is 16.8 percent, which is less than what is recommended globally, and currently, there is no directive to review this although it is studied periodically.

“The ratio of Saudi public debt is much lower than the average in G20 countries,” he added.