Finance ministry mulls imposing VAT

Ministry of Finance is considering the implementation of value added tax (VAT) on certain sectors, but is studying measures to minimize its impact on citizens.

Finance Minister Anas Al-Saleh said the ministry is studying alternatives to safeguard low-income people from the negative impacts of applying the economic reforms program following the slump in oil revenues.

The minister said the sharp drop in oil prices resulted in a massive decline in the state revenues, prompting the government to carry out economic reforms including diversifying sources of income. Accordingly, the government established the national program for financial and economic sustainability with the aim to reduce the budget deficit.