Saudi shoppers rush to buy gold before taxes triple

Jeddah, July 2, 2020

Saudi shoppers have rushed to buy big-ticket items such as gold, appliances and electronics ahead of the announced tripling of taxes on basic goods on Wednesday as the government tries to shore up revenue for its economy battered by the coronavirus and low oil prices.

The government is tripling the Value Added Tax, or VAT, on basic goods and services from 5% to 15%, starting on Wednesday. It comes as the Saudi economy is now forecast to contract by 6.8% this year, according to the latest projections by the International Monetary Fund.