Saudi Arabia increases import duties

11/06/2020,

On 10 June 2020, an increase on import customs duties came into effect for a wide range of products, including food products. Among others, imports of live mutton and goats, which were duty free before, are charged a 7 percent duty. Import taxes of other meats increased from 20 percent to 25 percent, those on fish from 3 percent to 6 percent, while dairy products and their derivatives from 5 percent to 10 percent. The increase in import duties is accompanied by the suspension of the cost of living allowances for public employees from 1 June and an increase in the Value Added Tax (VAT) from 5 percent to 15 percent, valid from 1 July 2020. These measures aim to decrease the current budget deficit, after a decline in global oil prices put pressure on the national budget, with the oil sector contributing about 50 percent of the Gross Domestic Product (GDP) and oil revenues covering about 80 percent of the country’s budget expenses.

Country: Saudi Arabia