Finance: raising value-added is one of the least damaging measures to support revenue and financing

The Undersecretary of the Ministry of Finance for Macro-Financial Policies, Saad Al-Shahrani, said that raising the value-added tax is one of the least harmful measures to finance national economic projects and support stability and financial sustainability .. He explained in press statements yesterday that every stage that the economy goes through must be dealt with with specific evaluation and updates, given the circumstances. The current local and global level, stressing the government’s commitment to financial and social goals, the most important of which is financial stability and financial sustainability, and when planning the financial for the state’s general budget, consideration is not given to only the current or next year, and he indicated that this comes to preserve the continuation of current and previous gains for future generations, and to avoid any risks that may occur. They arise during the pandemic or after the pandemic, and he pointed out that, based on the uncertainty of a specific time for the end of the pandemic, regular and sustainable sources of revenue must be found to finance social and economic projects. Any crises in the oil market. And the Minister of Finance had indicated the possibility of resorting to harsh measures to face the revenue deficit as a result of the decline in oil prices and the continuation of the Corona pandemic, and by reviewing all measures, the value-added tax was raised from 5 to 15%, and according to the Ministry of Finance, the value-added revenue in the first year of implementation in 2018 amounted to a percentage 5%, about 47 billion riyals, and earlier, the Zakat and Income Authority announced that it had seized 22,680 VAT-related violations since the beginning of the year 2020, and the Authority said: The most prominent violations were not keeping tax invoices, not collecting tax or collecting them less than the amount due, and not having Tax Number.

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