Saudi Arabia triples taxes, Cuts $26B in costs amid pandemic
Saudi Arabia announced today that it was tripling taxes on basic goods, raising them to 15%, and cutting spending on major projects by around $26 billion as it grapples with blows from the coronavirus pandemic and low oil prices on its economy.
Saudi citizens will also lose a bonus cost-of-living allowance that had been in place since 2018, according to the country's finance minister.
Despite efforts to diversify the economy, the kingdom continues to rely heavily on oil for revenue. Brent crude now hovers around $30 a barrel, far below the range Saudi Arabia needs to balance its budget. The kingdom has also lost revenue from the suspension of Muslim pilgrimages to the holy cities of Mecca and Medina, which were closed to visitors due to the virus.
The new measures are the most dra...