The Kingdom of Saudi Arabia has made it clear that there are no forthcoming plans to introduce personal income tax within the country. This confirmation came from the country’s Finance Minister, who emphasized the Kingdom’s dedication to its prevailing fiscal practices.
Speaking at the prestigious 2024 World Economic Forum held in Davos, Finance Minister Mohammed Al Jadaan reassured that the government’s financial agenda remains steadfast. He noted the Kingdom’s reliance on a diversified revenue stream, which includes the imposition of a value-added tax (VAT), corporate income tax, and zakat, a form of Islamic levy on the local population.
Al Jadaan pointed out that the government’s focus is not to modify these existing revenue sources but to refine economic procedures to create an environment more conducive to business. Saudi Arabia is keen on enhancing its economy by branching out into sectors such as tourism, technology, and logistics. The country is also improving its infrastructure with projects to boost connectivity, including the expansion of railway networks and airports.
In addition to these developments, the nation is investing in water treatment facilities to provide consistent services to its citizens and residents. It is also undertaking substantial renewable energy projects, which require significant funding.
To address the government’s budget shortfall, Saudi Arabia has raised $12 billion through bond issuance. This capital will help finance the deficit, which is currently estimated to be around two percent of the nation’s gross domestic product (GDP). Moreover, the government is accelerating its expenditure on significant development projects. Expressing confidence in the trajectory of Saudi Arabia’s economy, Al Jadaan cited indicators that hint at positive economic growth and advancement.