Saudi Arabia's vehicle imports fall to record lows after massive hike in VAT

VAT has been tripled in Saudi Arabia, a country where imported vehicles are a common sight.The last spurt in sales was in June when there was pent-up demand post lockdown and people rushing to buy before the hiked VAT came into effect.
By : Bloomberg
| Updated on: 29 Sep 2020, 07:59 AM
File photo used for representational purpose. (AP)
File photo used for representational purpose. (AP)
File photo used for representational purpose. (AP)
File photo used for representational purpose.

Saudi Arabia’s vehicle imports plummeted in July to the lowest level since 2015 - the earliest data available - after the government tripled its value-added tax.

Imports of vehicles, aircraft, vessels and associated transport equipment fell 64% year-on-year to 3.9 billion riyals ($1 billion), and by over a quarter from the previous month. That helped drag down overall imports by more than 30% annually after they appeared to recover in June.

Officials and analysts attributed a June spike in consumer spending to pent-up demand after the government lifted its coronavirus lockdown - and to Saudis rushing to beat the hike in VAT to 15%.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on
First Published Date: 29 Sep 2020, 07:59 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city