The International Monetary Fund’s (IMF) recommendation to increase the value added tax (VAT) to 10 percent remains just a “recommendation” and it is not a “must”, CNBC Arabia reported citing Abdulaziz Alrasheed, Assistant Minister for International Financial Affairs & Macro Fiscal Policies at Saudi Arabia Ministry of Finance.
Alrasheed told CNBC Arabia that IMF always issues recommendations to countries and the implementation of those recommendations are subject to the assessment of countries and their economic and financial interests.
He also said that the implementation of VAT was a result of an agreement between GCC members, and wasn’t a local decision, noting that VAT implementation is subject to international commitments.
Earlier, IMF recommended in a report, issued on September 9 this year, that tax authorities should consider increasing tax revenues of non-oil products, including the increase of VAT, which the Fund considers low.
Comments
{{DisplayName}}
{{ElapsedTime}}