Saudi Arabia announced Monday it was tripling taxes on basic goods, raising them to 15 per cent, and cutting spending on major projects by around $26 billion as it grapples with blows from the coronavirus pandemic and low oil prices on its economy.
Saudi citizens will also lose a bonus cost-of-living allowance that had been in place since 2018, according to the country’s finance minister.
Despite efforts to diversify the economy, the kingdom continues to rely heavily on oil for revenue. The kingdom has also lost revenue from the suspension of Muslim pilgrimages to the holy cities of Mecca and Medina, which were closed to visitors due to the virus.
