Saudi Embarks on Higher Taxation to Wane Oil Woes

Saudi Embarks on Higher Taxation to Wane Oil Woes

188
0
SHARE

– Saudi Embarks on Higher Taxation to Wane Oil Woes

– Saudi Arabia to Jerk up Taxation from Non oil Products

Iran banned from entering Saudi Arabia’s water

Saudi Embarks on Higher Taxation to Wane Oil Woes
picture of prince Mohammed bin Salman

Saudi Embarks on Higher Taxation to Wane Oil Woes

Saudi Arabia has revealed plans to embark on austerity measures to curb the major threat of national debt arising from its sliding oil price amidst growing pressures from its regional oil-exporting rival Iran.

According to Indian Times, in an interview with Bloomberg, Deputy crown prince Mohammed bin Salman said the country’s economic reform programme would raise an extra $100bn (£70bn) in revenues a year by 2020, tripling income from non-oil sources and balancing the budget.

Saudi Embarks on Higher Taxation to Wane Oil Woes

The extra revenue, according to officials, would come from measures such as a value-added tax, a tax on expats and a tax on sugary drinks. Incomes, however, would remain untaxed.

Reports have claimed that Saudi Arabians have been preventing transporting Iranian oil from entering their waters, in what is seen to be an attempt to stifle Tehran’s ability to return to the global energy markets. According to the Financial Times, only around eight tankers have left Iran and reached Europe since sanctions were removed in January.

Saudi Embarks on Higher Taxation to Wane Oil Woes

The obstruction represents the latest sign that the Saudi proposal of an Opec production freeze is dead in the water. Oil prices fell yesterday, with a barrel of Brent dipping 1.53 per cent to $38.08, as traders’ belief in the likelihood of a freeze evaporated.

YOU SHOULD READ THIS:  Millionaire family caught pilfering funds

In February, Naijapr understands that Saudi and Russia agreed to support prices by freezing production at January’s levels, but only if other major producers did the same. However, Iran is insisting on its right to hike production back to pre-sanctions levels. Iran’s exports last year fell to 1.1 million barrels a day – half of its pre-sanctions output levels.

Saudi Embarks on Higher Taxation to Wane Oil Woes

Oil revenues make up around three quarters of the Saudi government’s tax revenues. The International Monetary Fund estimated last year that Saudi needed a global oil price of around $106 a barrel to balance its then level of spending with its revenues.