Islamic Finance

Saudi Arabia and UAE start the new Year introducing VAT

Saudi Arabia and the United Arab Emirates (UAE) introduced the Value Added Tax (VAT) for the first time from Monday.

It is a five per cent tax on most goods and services to boost revenue. The VAT will be applied on food, clothes, electronics and gasoline, phone, water and electricity bills, as well as hotel reservations, the BBC reported. The five percent sales tax applies to most goods and services and analysts project that the two governments could raise as much as $21 billion in 2018, equivalent to 2.0 percent of GDP.

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Swiss banks start to review Saudi account information

Swiss Federal prosecutors said on Monday that the Swiss authorities were examining information provided by banks about possible suspicious transactions related to Saudi accounts.

The comments came in response to a report published in the Financial Times, which quoted unnamed sources who claimed that the Swiss banks began reporting suspicious activities within the accounts of some Saudi clients.

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