Government stimulus package – COVID AID

Saudi Arabia has extended stimulus measures to offset the impact of COVID for an indefinite period. Since March, the government has rolled out 142 initiatives, spending more than SR 142 billion to counter the pandemic’s impact. These measures include supporting 60% of local private-sector employees, deferral of specific fees and taxes, including the postponement of businesses’ VAT payments.

The Economist expects that VAT’s rise may be short-lived and rescinded as oil prices strengthen, and a modest economic rebound allows stimulus measures to end.

Source: The Economist