Saudi Finance Minister Confirms No Plans for Income Tax on Individuals, Focuses on Economic Rationalization

Saudi Arabia, January 2024 : In an exclusive interview with Bloomberg at the 2024 World Economic Forum in Davos, Finance Minister Mohammed Al-Jadaan emphatically stated that Saudi Arabia has no intentions to impose income tax on individuals.

Al-Jadaan outlined the country's commitment to mobilizing local resources through existing mechanisms, including value-added tax (VAT), income tax on companies and foreign investors, and zakat on the local population. Emphasizing the goal of making the economy more business-friendly, he assured that there is no intention to alter the current taxation framework.

Highlighting Saudi Arabia's diversification efforts, Al-Jadaan pointed to advancements in tourism, technology, and logistics. The Kingdom is actively engaged in crucial infrastructure projects such as railways, airports, and water treatment plants, aiming to provide uninterrupted services to citizens and residents.

Addressing the financing of the deficit, Al-Jadaan disclosed that the recently issued $12 billion worth of bonds will be utilized to balance the deficit, standing at approximately two percent of the gross domestic product (GDP) for the current year. He underscored the importance of expediting spending on major projects while expressing optimism about positive developments on the economic front.

As Saudi Arabia ventures into renewable energy projects, the Finance Minister remains confident that sufficient financing will be secured to support the Kingdom's ambitious initiatives.

Source : https://saudigazette.com