Ministry may study dependent levy, new savings products: Al-Jadaan

Mohammed Al-Jadaan, Minister of Finance, disclosed that a study is presently in progress to re-evaluate the dependent fee, as Saudi Arabia seeks to attract skilled talents and foster stability, ultimately aiming to enhance the overall productivity.

In a podcast, Al-Jadaan explained that the dependent fee was based on an economic study, considering the consumption patterns of approximately two million people benefiting from subsidized services provided by the state.

The equation evolved, especially with the introduction of the Citizen Account Program and the reduction of certain subsidies, the minister noted.

Addressing the implementation of value-added tax (VAT), Al-Jadaan acknowledged the challenging circumstances but emphasized that it was the optimal choice at the time to safeguard public finances and reserves in the medium and long terms. “I do not believe it is the right time to reconsider the matter,” the minister said.

On separate note, Al-Jadaan said that the Sah product is an initial step, tailored for individuals with capped limits due to its high returns, serving as a capital preservation savings product.

Ongoing efforts are focused on introducing other savings products with a different structure than the Sah product. These new products may eventually be subject to Zakat, and the ministry is collaborating with specialized committees to finalize these offerings, with an official announcement expected upon completion, Al-Jadaan noted.