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Saudi Crown Prince demands report on expat worker tax
| Published: | 16 Jan at 6 PM |
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Saudi Arabia’s Crown Prince Salman, the state’s deputy PM and minister for defence, has instructed the Council of Saudi Chambers to present a report on the controversial expat worker tax.
The recently-announced tax is levied on private companies who employ more expat workers than local staff, and costs SR 2,400 per year per worker. According to the Arab News, the Crown Prince wishes to monitor the effect of the tax, introduced by the Ministry of Labour, on the Saudi economy.
The order was given after a recent meeting between the executive committee of the Council of Saudi Chambers and the prince, during which the committee detailed the negative effects of the new tax on the domestic market. It has been reported that the prince emphasised the prioritization of stability for the nation and the maintenance of its interests.
During the discussion, the committee expressed its belief in the Saudization of jobs through a partnership between the private sector and the state. However, it added, the best interest of the nation would not be served by huge losses to the economy and the resulting reduction in available jobs for Saudis.
All the committee members said they fully supported the scheme to reduce unemployment, but stated their concerns that there are many jobs that Saudis are at present unable to undertake. Finally, committee members called for more detailed studies in the fields of local market needs and the support of the private sector.
The recently-announced tax is levied on private companies who employ more expat workers than local staff, and costs SR 2,400 per year per worker. According to the Arab News, the Crown Prince wishes to monitor the effect of the tax, introduced by the Ministry of Labour, on the Saudi economy.
The order was given after a recent meeting between the executive committee of the Council of Saudi Chambers and the prince, during which the committee detailed the negative effects of the new tax on the domestic market. It has been reported that the prince emphasised the prioritization of stability for the nation and the maintenance of its interests.
During the discussion, the committee expressed its belief in the Saudization of jobs through a partnership between the private sector and the state. However, it added, the best interest of the nation would not be served by huge losses to the economy and the resulting reduction in available jobs for Saudis.
All the committee members said they fully supported the scheme to reduce unemployment, but stated their concerns that there are many jobs that Saudis are at present unable to undertake. Finally, committee members called for more detailed studies in the fields of local market needs and the support of the private sector.
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