Saudi Arabia will not impose taxes on money sent back by foreign workers in the Kingdom to their home countries, Finance Minister Ibrahim Al-Assaf said.
Al-Assaf’s remarks came at a press conference held on Tuesday to discuss the ministry’s role in the National Transformation Plan, a key part of a blueprint to prepare the kingdom for the post-oil era.
On Monday, the Saudi government announced an economic reform plan which included 543 initiatives, for 24 governmental bodies for the upcoming four years.
Al-Assaf said two taxes were approved as part of the plan: a value-added sales tax which is expected to be introduced in 2018, and a tax on harmful substances such as tobacco or sugary drinks.
The VAT rate has been approved at five per cent but a study has been undertaken on possibly raising that rate gradually, he said.
Al-Assaf explained that the plan which will cost an estimated 270 billion riyals ($72 billion) to implement, sets targets for government agencies and includes spending on new initiatives in housing, healthcare, mining and renewable energy.
The minister denied plans to tax income.