Saudi Arabia Triples VAT, Cuts State Allowances

The video discusses Saudi Arabia's decision to cut spending and triple VAT to 15%, a move announced by Mohammed Al-Jadaan. Riad Hamade provides context, explaining that the government aims to reallocate spending towards healthcare and business support amid the COVID-19 pandemic and low oil prices. This decision is unusual as other governments are increasing spending to support their economies. The move may face criticism due to the economic strain caused by the pandemic and oil price fluctuations.

What is the planned increase in VAT in Saudi Arabia?

How does the government's decision to increase VAT contrast with global economic trends?

What does the minister mean by 'reallocation' in the context of Saudi spending?

What sectors is the Saudi government focusing on reallocating funds towards?

What challenges is the Saudi economy facing that may impact public perception of the VAT increase?