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  • Category: Miscellaneous

    VAT started in Saudi Arab from Today. Do you think its downfall started in KSA?

    VAT started in Saudi Arab from Today. Do you think its downfall started in KSA? Previously there was no tax and Government started tax on many things from today. Do you think its all happening due to downfall in market of KSA and Oil prices.

    Today Oil price rate increased in KSA and its just increase to approx double rate . Now 1 SAR per liter but its still cheaper than India.

    KSA Put 100 SAR per member for out side peoples only.
  • #621575
    I had the same doubt. But Saudi has implemented various construction projects recently. It is only natural that the budget is short. And there was a depression in oil value too in recent months.
    KSA is in political and financial crisis now.
    But why VAT? Instead of GST ? That would only mean, the material cost is increasing.
    Saudi imports a lot of things with very little production.
    This sure must cause shock and stress among the citizens who have until now lived without any tax at all. Now they have to pay living tax!

    The stronger a light shines the darker are the shadows around it.

  • #621578
    I wouldn't call it a downfall, I would call it hard times and the Great Indian dream of the lucrative Gulf Job has lost its sheen. Many Gulf economies are struggling due to competition and drying up of the Petrodollars, countries that have a varied source of income (Dubai) are better off.
    Unfortunately, the migrant workforce from India would suffer. The jobs in the construction sector, mobile shops, electronic good, drivers etc are all being taken off and reserved for the local population. To earn money or revenue for the exchequer, the easiest and the quickest way is taxes and more taxes for the non-native population.
    I think India has a huge problem that is at hand and it is going to get worse and worse because of two important factors. First being getting jobs and compensation for the people who come back from such places without jobs and second being a loss in the regular remittances from such foreign countries when expat Indians send money back to their families in India.

  • #621653
    It is because of the financial crisis the government is feeling because of the many new projects implementation is in progress. But I think with the new projects implementation will over there may be a change again in the economy of the country. So the tax what presently proposed may not g be there forever.
    always confident

  • #621794
    I think Vat will remain same even after economic grow because oil crisis is the main reason for fall down at KSA . Other countries founding alternative of petrol or diesel like Saur Energy and Gas system So growing economic will be difficult for KSA in future but India will grow more its much possibility due good development is in progress.

    Currently SAR rate is also going down against INR so Indian currency is being strong day by day and its good symbol for us.

    Santosh Kumar Singh
    (Sr. Microsoft Dynamics Axapta Technical,Mumbai)

  • #621798
    Every government has to maintain the income and expenditure of their yearly development and with recent spurt in oil rates and less order from member countries, Saudi must be facing the resource crunch for the first time in History and therefore going for VAT is the must for that country. There is nothing wrong and it no way connected to the down fall of the KSA. Every economy has the spurt and down fall in its life and this one is also a phase of that and soon the KSA would gain the situation. One thing is sure, the whole world would face the same problem sooner or later.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #621825
    Not only in KSA, but also in UAE. Both these countries will face some downfalls initially but life will move on normally in a few months time. As the percentage of VAT is only 5% it will not have a great impact on the people. Also, real estate, school fees, transportation etc are excluded from VAT. I feel the increase will be nominal but like any change, initially, people will not be ready to accept it.
    "Do not give up, things might not favour you always"

  • #621845
    A country has to decide how to generate revenue for its functions especially the huge infrastructure developments. Moreover the defence expenditure are increasing very much due to the disturbances in various geographic areas.

    So a government cannot sustain on a single source of revenue. Those who are beneficiaries of the government's development are to share a bit back to the government for further recycle.

    India has progressed from VAT to GST. GST has not yet stabilised and so we feel the problem. Slowly it wil stabilise and we will gt habituated to it. Anything new will have some resistance and adoption to a new one may be bit difficult.
    Let KSA or others implement and then they can make necessary adjustments after feedback from their people.

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