Saudi Arabia votes no on ex-pat levy
Monday, Apr 02, 2012 Filed Under :Planet Talk Instant News
Saudi Arabia has said no to a tax on foreign workers that lobbyists argued would have narrowed the wedge between national and non-national earners.
While people from around the world make cheap calls to Saudi Arabia to speak to their loved ones, foreigners working in the country would have faced a squeeze on their income had it not been for the Shura Council’s no vote.
Arabia Business explained that the council is a body set up to propose or consult on legislation, however final approval remains with the king.
It is understood that the opponents argued this was not the right time for Saudi Arabia to increase taxes on foreign workers, with digitaljournal.com reporting that expatriates send around SAR 100 billion out of the country every year.
The Shura Council’s secretary general Dr Mohammed bin Abdullah Al Ghamdi expanded on the reasons behind the decision not to levy foreign workers.
Arabia Business quoted him as saying: “A number of the members saw that the recommendation is not convenient at the moment, in view of the current situation of the kingdom’s development requirements in various business and professional sectors.”
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