Destination KSA - Your Guide to Saudi

Destination KSA - Your Guide to Saudi

Here’s What You Need To Know About 2016 Saudi Budget

Here’s What You Need To Know About 2016 Saudi Budget
Due to the reduction of oil export prices globally; some measures have been taken by The Kingdom’s officials to overcome the budget deficit due to high expenditure in the coming years. The main way of doing will be cutting down on Government subsidies, which means that the public will have to pay more for some necessities, which they didn’t have to before because the Government had it covered. These subsidy adjustments will take place over the next 5 years.

The measures the Government has already taken, or plans to take, are:

1

Octane 91 has increased from 45 halalas to 75 halalas (50% rise) per liter. Octane 95 has increased from 60 halalas to 90 halalas (67% rise) per liter.

5

Saudi Finance Ministry plans to introduce a value-added tax on items just like the tax system in the rest of the Gulf region.

6

There has been a raise in tax charged on international passengers traveling to and from the kingdom to SR 87 from the current SR 50 from 1st January. Transit passengers are currently exempted from those fees.

3

A rise in electricity prices is to be implemented because of an increase in tariffs.

Residential (For above 4000 kw/hr):

Commercial:

Industrial:

Government sector:

2

Just like electricity, an increase in water tariffs has already been in place. In order to reduce water consumption, the Ministry of Water and Electricity announced the change in pricing which will be SR 9 per cubic meter for both water and sanitation services and SR 6 per cubic meter in for water only. The cost will depend on the water consumption amount and the number of meters.

Note: This increase only applies to Government, industrial and commercial use.

Prices of natural gas, kerosene, Arabian light and heavy crude oil, heavy fuel oil, ethane, and butane have also been revised. The new prices for these products will be effective from Jan. 11.


More information can be found in the following links:
http://susris.com/2015/12/29/saudi-arabias-2016-fiscal-budget-jadwa/
http://www.khaleejtimes.com/region/saudi-arabia/saudi-may-cut-subsidies-and-impose-taxes
http://gulfnews.com/business/economy/saudi-arabia-hikes-petrol-prices-by-more-than-50-per-cent-1.1645045
http://saudigazette.com.sa/saudi-arabia/up-to-50-hike-in-fuel-prices-from-today/
http://www.arabnews.com/saudi-arabia/news/829286
http://www.arabnews.com/economy/news/863486

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