Shoura: No taxes on expats

April 4, 2012

sau


Riyadh, April 4: The Shoura Council rejected a move to tax the incomes of individual expatriate workers in the public and private sectors at its 18th regular session yesterday.


The session was chaired by Council Vice President Dr. Mohammed bin Amin Jafri.


Secretary-General of the Shoura Council Dr. Mohammed Al-Ghamdi said the council made the decision after hearing the arguments for and against the proposal.


He added that since proponents of the move could not attain the requisite majority in the house to secure approval, it was rejected. He said the Kingdom is implementing a number of developmental projects in various sectors that need professional skills.


Supporters felt if approved, the proposal would have helped bridge the gap between the wages of Saudis and non-Saudis and increased the chances for locals to work in the private sector. Al-Ghamdi clarified the proposal had been submitted some time ago.


News that the debate on the issue had been revived had drawn criticism from the expatriate community, especially low-paid workers.


According to a local newspaper, the finance committee of the Shoura Council has recommended carrying out fresh studies on the possibility of imposing tax on all foreigners working in both the public and private sectors in the Kingdom.


The source said the new proposal was made by council member Muhammad Al-Quwaihes, who presented it as an additional recommendation attached to the annual report of the Department of Zakat and Income Tax that had already been discussed by the house.


“The government is neither levying a single riyal in tax or Zakat on foreign workers remittances, nor do they need to pay any kind of taxes,” Al-Quwaihes said.


An expatriate, Sauda Salem, expressed dismay at the possibility foreign workers may have to pay income tax.


“It is a great shock for all expats who are not managers or making good money,” he said.


As most foreigners are unable to meet their expenses, their wives try to support them by working small jobs, he added


“I request them to reconsider the plan of taxing expats only to support Saudization,” he suggested.


Another expat, Mohammad Nazeer, claimed expatriates would be happy to contribute to the Saudi economy by paying income tax on their salaries and bonuses, adding they were very grateful for the generous tax-free salaries and benefits enjoyed in Saudi Arabia.


Another worker, Tanveer Ahmad, was willing to pay Zakat as long as the money went to the needy.


“As a Muslim, in order to make my earnings fully Halal, I should pay 2.5 percent of my earnings toward Zakat. I do pay it, but only in my native country where there are needy people. I have no objection to paying Zakat here if the government makes sure it goes to the needy,” he said


According to Shoura member, Al-Quwaihes, levying an income tax on foreigners would boost the ongoing Saudization drive. “Foreigners working in the Kingdom transfer about SR100 billion to their countries of origin annually,” he said.


Al-Quwaihes noted most countries in the world impose income taxes on individuals who work and earn money in those countries.


“It is high time we impose income tax on foreigners. It is also to be noted that foreign workers are beneficiaries of all government support and subsidies on utility services and products such as water, electricity, wheat, and petroleum products,” he said.


Nearly a decade ago, the Shoura Council reviewed the possibility of imposing taxes on foreign workers but later the proposal was shelved.


There are 8 million foreigners in the Kingdom, an overwhelming majority of them in the private sector.


For another expatriate, Dr. Victoria Charlston, imposing taxes on foreigners would mean the job market would instantly lose many of its Western professionals.


“Financial reward is pretty much the only reason why Westerners decide to spend a stint of their working lives in KSA. There is little other reason or incentive. Let’s hope that KSA will have enough of its own educated, highly trained manpower who will fill the gap if expatriates leave.”


She said taxing non-Westerners earning low salaries for their hard labor was akin to daylight robbery.


“They have so few rights compared to their fellow countrymen who happen to live and work in other countries around the globe, and to tax them would be another nail in their coffin,” she said.


“Should taxes be imposed on all foreigners, and this term in itself is laughable as many so-called foreigners are third and fourth generation citizens who would long ago have enjoyed equal rights to citizens should they have settled elsewhere in the world, then they should immediately and justly be afforded similar status to KSA nationals.


“Furthermore, to repeatedly discuss and question in newspaper columns these workers’ rights to send their hard earned money to their relatives overseas is quite frankly a disgrace. Their money is simply the fruit of their labor, to dispose of as they wish.


“They have not been lazily sitting on their backsides waiting for money to be deposited in their bank accounts, as many of KSA’s youngsters do. When one makes the decision to work in KSA, one immediately has to give up certain aspects of life that would be enjoyed in one’s homeland. This sacrifice is offset by a rewarding salary.”


Both Saudi and expatriate employees working in the Kingdom had to pay income tax until it was abolished in 1975. Later, there were moves to reintroduce income tax on foreigners in the late 80s. However, in 1988, King Fahd scrapped the plans.


At present, only Saudi citizens and Saudi companies need to pay Zakat of 2.5 percent annually on profits and on the assessable amount for individuals, in addition to a tax on foreign investors. In a bid to attract more foreign investment into the Kingdom, the government slashed in 2004 the tax rate imposed on foreign investors from 45 to 20 percent.


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News Network
March 11,2020

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

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News Network
January 16,2020

Abu Dhabi, Jan 16: The number of people being killed by terrorism activities worldwide has decreased significantly over the recent years, according to the latest Global Terrorism Index.

The 2019 Global Terrorism Index, which was presented at a forum in Abu Dhabi on Wednesday also showed that the UAE improved its ranking in the index by coming down to 130th rank among the 163 countries. The terrorism impact in the UAE is categorised as 'very low'. In the UAE, only two terrorism incidents were reported over the past decade - one in 2010 and another in 2014 - and there were no casualties.

Commenting on the report, Mansour Al Mansouri, director of the UAE National Media Council (NMC) said: "These findings rightly show the UAE as one of the safest countries in the world in terms of terror threat."

The index showed that the total number of deaths from terrorism declined for the fourth consecutive year in 2018, falling by 15.2 per cent to 15,952 deaths. This represents a 53 per cent reduction since its peak in 2014 when 33,555 people were killed in terrorist attacks.

The index published for the seventh year in a row, ranks 163 countries across the globe according to the relative impact of terrorism. This takes into account the number of terrorist incidents, deaths caused by terror and total value of property damage.

The latest results saw three Middle East countries - Iraq, Syria and Yemen - continue in the top 10 positions of the index.

The findings also showed Taleban overtaking Daesh as the deadliest terrorist group in the world, accounting for 38 per cent of all terrorist deaths. This is an increase of 71 per cent. Afghanistan is the country most affected by terrorism in 2018 followed by Iraq, Nigeria, Syria and Pakistan, according to the report. The least impacted nations were Belarus, Guinea-Bissau, Oman, The Gambia and North Korea.

During his presentation of the key findings of the index at the Foreign Correspondent's Club of the UAE (FCC), Serge Stroobants, director of Europe and Mena at the Institute of Economics and Peace, said lesser people were now being killed in terrorism activities.

"There have been long-term trends in global terrorism, with deaths caused by terror down by 52 per cent compared to high point of 2014, which saw Daesh and Boko Haram at their peak," said Stroobants attributing the decrease in the deaths to the increase in security measures and cooperation among nations in the fight against terrorism.

In contrast to this, there has been a 320 per cent increase in far-right terrorist incidents in the West, with political ideology being the driving force behind an increased proportion of terror motivation.

"There has been an increase in far-right terrorism in Western Europe, North America and Oceania for the third consecutive year," said Stroobants.

Terrorism still remains a global security threat, according the index, with 71 countries recording more than one death - the second highest number of countries since 2002.

Stroobants said conflicts remain the main cause of terrorism with 90 per cent of terrorist incidents occurring in places where there are conflicts or insurgencies.

The report said the global economic impact of terrorism was $33 billion in 2018, a substantial decrease of 38 per cent from the previous year.

Boko Haram was responsible for 80 per cent of all female suicide attacks, said the terrorism index.

Global Terrorism Index: Most affected countries

>Afghanistan (7379 deaths)

>Iraq (1,054 deaths)

>Nigeria (2,040 deaths)

>Syria (662 deaths)

>Pakistan (537 deaths)

>Somalia (646 deaths)

>India (350 deaths)

>Yemen (301 deaths)

>The Philippines (297 deaths)

>Democratic Republic of the Congo (410 deaths)

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News Network
April 25,2020

Riyadh, Apr 25: Saudi Arabia announced nine deaths and 1,197 new cases of the COVID-19 virus on Saturday.

Of these cases, 120 were recorded in Madinah, 364 in Makkah, 271 in Jeddah, 170 in Riyadh and 43 in Dammam.

The number of people who had recovered from the coronavirus in the Kingdom increased to 2,214 after 165 patients were reported to have recovered.

A total of 136 people have died of the disease in the Kingdom so far.

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