Covid-19 pandemic had an adverse effect on the global economy. In July 2020, Saudi Arabia increased VAT three folds to 15% to offset the impact of pandemic on the economy and lower oil prices. However, in a recent interview Majid bin Abdullah al-Qasabi (Minister of Commerce ) has announced that increase in the VAT rates could be revised once the global crisis over. As per the Ministry of Finance, Saudi Arabia was expected to record a deficit of SAR 298 billion ($ 79 billion) for the year 2020. The deficit is expected to shrink to SAR 141 billion ($37.6 billion) in 2021.
In the view of the current scenario, an improvement in economy is expected. So taxpayers can expect revision in VAT rates in Kingdom of Saudi Arabia.
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