Saudi Arabia to raise VAT threefold, suspend cost of living allowance

CAIRO - Saudi Arabia’s government is suspending the cost of living allowance and raising the value added tax threefold, as part of measures aimed to shore up state finances, which have been battered by low oil prices and the coronavirus.

“Cost of living allowance will be suspended as of June first, and the value added tax will be increased to 15% from 5% as of July first,” the state news agency reported on Monday. —Reuters