Saudi Deputy Crown Prince eyes subsidy cuts

Saudi Arabia's Deputy Crown Prince, HH Mohammed Bin Salman, is also supportive of taxing undeveloped lands and mines

Deputy Crown Prince, HH Mohammed Bin Salman Al Saud, Saudi Arabia.
Deputy Crown Prince, HH Mohammed Bin Salman Al Saud, Saudi Arabia.

Saudi Arabia's Deputy Crown Prince, HH Mohammed Bin Salman Al Saud, has joined the list of officials and experts advocating subsidy cuts in the Kingdom. 

The Kingdom's oil minister, Ali Al Naimi, said early in November that the country does not need to reduce energy subsidies just yet.

However, Saudi has already begun the implementation of taxes in a bid to boost its revenue stream, which is currently hit by globally-low oil prices. 

The Crown Prince, who is also the country's Minister of Defense, claimed he is considering taxation on consumer goods and the imposition of value added tax (VAT), besides subsidy cuts. 

A report in New York Times quotes the Crown Prince as saying the Kingdom's "overdependence" on oil is the primary challenge he wants to tackle. 

"The key challenges are our overdependence on oil and the way we prepare and spend our budgets," he said. 

“70% of Saudis are under age 30, and their perspective is different from the other 30%,” he continued.

"I am working to create for them the country they want to be living in in the future.”

The tax on undeveloped land, which the Kingdom's Cabinet recently progressed with, also has the Crown Prince's vote, as does the suggestion to privatise and tax mines. 

 

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