OFWs affected by Saudi Arabia’s imposition of 5% VAT on basic goods, services

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  • OFWs affected by the Saudi Arabia’s imposition of 5% Vat on basic goods and services
  • The price of gasoline has reportedly increased by at least 55%
  • Not only OFWs, but other expatriates working in the Arab nation are affected by the VAT imposition

Overseas Filipino workers in Saudi Arabia are affected by the Kingdom’s imposition of 5% Value Added Tax (VAT) on several goods and services as part of its economic reform.

As mentioned in the UNTV story dated January 3, 2017, Saudi Arabia’s food and beverage industry, petroleum products, rents of commercial establishments, remittance fee, and domestic transportation, among others, are affected by the VAT imposed last January 1.

Filipino workers in the Arab nation were surprised by the increase of gasoline price.

“Medyo mataas na ang presyo ng gasolina ngayon…Ngayon tipid- tipid na, dati walang problema, ngayon tipid-tipid na,” Eric Cendaña, an OFW in Saudi Arabia, said.

[The gasoline’s price is quite high now. We have no problem before, but now we should scrimp and save]

The 5% VAT, according to UNTV, resulted to at least 55% increase in the price of gasoline. The electric bill has reportedly risen threefolds, while vegetables and fruit products’ prices increased by 40%.

Another OFW said not only Filipinos, but other expatriates as well were affected by the rising prices of goods and services in Saudi Arabia.

“This is another surprising bill of electricity…This is very far from our budget and this affected everybody, not only Filipino expats but all expats living in the Kingdom,” Celso Garcia said.