According to the latest information, the Saudi Customs Administration announced that it will increase import tariffs on some products starting from June 20. The affected products have been reduced from more than 2,600 in the previous notice to 1,449, with an adjustment range of 0.5%-15%. between.
The products subject to this tariff adjustment include:
Animal and plant products: 224 products;
Chemicals and rubber and plastic products: 50 products;
Leather: 27 products;
Paper and rubber products: 38 products;
Textile and footwear products: 91 products;
Minerals, ceramic tiles, Metal and steel products: 878 products;
Machinery, electrical appliances and auto parts products: 115 products;
Instruments , furniture, toys, art and miscellaneous products: 26 products.
Partial list
According to the official website of the Economic and Commercial Office of the Chinese Embassy in Saudi Arabia, Saudi Arabia’s multiple import tariff adjustments have been hugely impacted by the fall in oil prices and the impact of the new crown epidemic. Local economic and trade personnel in Saudi Arabia believe that there are many reasons behind the government’s increase in import tariff rates, including protecting domestic industries and increasing national fiscal revenue.
Faced with the COVID-19 crisis and the global economic recession it triggered, most countries have launched expansionary fiscal stimulus plan to boost domestic economic activity. Saudi Arabia has unveiled a plan to triple its value-added tax, raising the value-added tax (VAT) rate from 5% to 15% starting July 1 to raise additional fiscal revenue.
Raising tax rates to cope with the impact of the epidemic
Saudi Arabia’s GDP fell by 1% in the first quarter
Statistical data released by the Saudi General Bureau of Statistics on the 30th showed that Saudi Arabia’s gross national product fell by 1% in the first quarter compared with the same period last year. Data show that the growth rate of the non-oil industry in the first quarter was 1.6%, but the growth rate of the oil sector was -4.6%.
Some analysts said that the spread of the new coronavirus pneumonia epidemic has suppressed global demand for crude oil, and measures such as curfews and movement control measures that began in March have also had a negative impact on the service industry and tourism industry. Wait for the non-oil economy to have a certain impact. The International Monetary Fund previously predicted in a report that Saudi Arabia’s GDP will decline by 6.8% in 2020.
In the first quarter of 2020, Saudi Arabia’s government revenue was only 192 billion riyals, a year-on-year decrease of 22%; oil revenue fell by 24% year-on-year to 129 billion riyals. In Seoul, non-oil revenue also plummeted by 17%, and the government’s fiscal revenue was in an overall crisis.
The negative factors in the second quarter of 2020 may have a greater impact on the Saudi economy. Before the new austerity measures were announced, Saudi Arabia’s budget deficit had already reached 15% of GDP. </p
