Tax-free no more: Saudi Arabia, UAE to roll out VAT in 2018 - ABC News
Saudi Arabia used to fund itself through gas royalties. Either its budget has increased or it can't sell royalties at the same price it used to, or both.
Imagine if Canada could reduce its budget enough to live off of royalties and fines and nothing more than that?
Now Saudi Arabia also requires that people give 1/20th of their accumulated wealth to the poor. That doesn't count as a tax there since that money goes straight to the poor. I suppose Canada could do something similar. But again, it would require a significant reduction to the Canadian government budget.
'Saudi Arabia and the United Arab Emirates, which have long lured foreign workers with the promise of a tax-free lifestyle, plan to impose a 5 percent tax next year on most goods and services to boost revenue after oil prices collapsed three years ago.'
'Meanwhile, Saudi Arabia recently unveiled the biggest budget in its history, with plans to spend 978 billion riyals ($261 billion) this coming fiscal year as the government forecasts a boost in revenue from the introduction of VAT and plans to reduce subsidies. Still, Saudi Arabia is facing a budget deficit until at least 2023.'
Saudi Arabia used to fund itself through gas royalties. Either its budget has increased or it can't sell royalties at the same price it used to, or both.
Imagine if Canada could reduce its budget enough to live off of royalties and fines and nothing more than that?
Now Saudi Arabia also requires that people give 1/20th of their accumulated wealth to the poor. That doesn't count as a tax there since that money goes straight to the poor. I suppose Canada could do something similar. But again, it would require a significant reduction to the Canadian government budget.
'Saudi Arabia and the United Arab Emirates, which have long lured foreign workers with the promise of a tax-free lifestyle, plan to impose a 5 percent tax next year on most goods and services to boost revenue after oil prices collapsed three years ago.'
'Meanwhile, Saudi Arabia recently unveiled the biggest budget in its history, with plans to spend 978 billion riyals ($261 billion) this coming fiscal year as the government forecasts a boost in revenue from the introduction of VAT and plans to reduce subsidies. Still, Saudi Arabia is facing a budget deficit until at least 2023.'
