by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise, Muslim World
Jeddah : Saudi Arabia’s General Authority of Zakat and Tax (GAZT) clarified that exports are zero-rated under the VAT Law and Implementing Regulations.
This means that in Kingdom enterprises exporting goods and services can deduct the VAT-eligible input taxes they paid, as long as they file their tax returns as required.
GAZT stressed that the provision of zero-rating exports is one of many incentives given under the VAT to enterprises exporting goods and services.
In order to apply the zero rating, the supplier of goods and services must retain evidence that they have been transported from the Gulf Cooperation Council (GCC) region, within 90 days after supply, as stipulated in Article 32 of the regulations.
All intra-GCC supplies will be zero-rated as an interim measure until VAT is officially implemented in the remaining member nations and electronic VAT system is established across the GCC.
All exporting enterprises must retain the relevant documents, including those issued by Saudi Customs, which prove that the supplies have been formally cleared for export on behalf of the supplier or customer for each supply, commercial documents with the customer’s details and place of delivery, as well as transport documents for the delivery or receipt of the supplies outside the GCC region.
GAZT may reject the documents if they fail to provide sufficient evidence that the supply was transported outside the GCC region, and the standard 5 percent VAT rate will apply.
GAZT also reminded all VAT registered enterprises with annual supplies exceeding SR40 million ($10.7 million) to file monthly tax returns, as stipulated by the VAT Law and Implementing Regulations.
—AG/UNA-OIC
by admin | May 25, 2021 | Muslim World
Riyadh : Prominent businessmen in Saudi Arabia, detained in November in an anti-corruption purge, have been released after reaching financial settlements with the Kingdom authorities, a media report said.
Among those set free on Friday were Waleed al-Ibrahim, the head of regional television network MBC and Khalid al-Tuwaijiri, a former chief of the Royal Court, the BBC reported on Saturday.
The men, according to reports, paid “substantial financial settlements” — though the amounts have not been made public.
Al-Ibrahim’s deal may have included his controlling share in MBC — the largest media company in the Middle East, reports said.
More than 200 princes, politicians and wealthy businessmen were detained in a crackdown on “systematic corruption” launched by Crown Prince Mohammed bin Salman in November. He has been accused of using the investigation to remove opponents and consolidate his power, the BBC reported.
Those detained were accused of bribery, money laundering as well as extorting officials.
Since then, they have been held in the Ritz-Carlton hotel in Riyadh, which is due to reopen on February 14. The settlements were likely “costly”, the BBC report said.
Two and a half months after the start of the crackdown, the campaign appears to be moving to a new phase. Most of the roughly 350 men detained have been released after either being cleared or surrendering significant assets to the government.
And Crown Prince Mohammed is turning the screws on those who remain, threatening to move them to an actual prison and put them on trial, Saudi officials said.
He has said that the crackdown could return $100 billion in ill-gotten gains to the treasury while sending a firm message that the old, corrupt ways of doing business are over.
Prince Miteb bin Abdullah, who was released at the end of November, reportedly paid over $1 billion.
In the aftermath of the purge, Saudi Arabia’s Attorney General said at least $100 billion had been misused through systemic corruption and embezzlement going back decades.
The detentions and the expensive settlements were being characterized by the state as an attempt to recover those funds. Many more of those detained remain in the Ritz Carlton under guard. They are expected to be sent to prison to await trial.
—IANS
by admin | May 25, 2021 | Muslim World
Yemenis inspect damage at the site of a reported air strike by the Saudi-led coalition, on the outskirts of the northwestern Huthi-held Saada province. (Photo credit: AFP)
Riyadh : The Saudi-led coalition has announced the launch of a Yemen Comprehensive Humanitarian Operation (YCHO) which aims to enhance the delivery of aid and commercial supplies, including critical fuel, medical supplies and food to the violence-battered country on the southern tip of the Arabian Peninsula that has been caught in a civil war with international ramifications since 2015.
The Coalition will substantially contribute to the 2018 United Nations Yemen Humanitarian Response Plan.
Countries within the Saudi-led Coalition are among the highest contributors of humanitarian and developmental aid to Yemen, a largely poor and tribal country of 28 million people who have been hit hard by the conflict, and the plan reiterates their commitment to bringing needed food, medicine, humanitarian assistance, and fuel supplies to the people of Yemen, said a Saudi Arabia government release.
Under the YCHO, the Saudi-led Coalition will contribute $1.5 billion in new donations to international organisations to ensure the success of the 2018 UN Yemen Humanitarian Response Plan. It constitutes:
Port Expansion: The Coalition will lead the expansion of additional Yemeni ports to ensure the effective flow of imports. This will include the installation of four additional cranes purchased by the Coalition in Mokha, in Aden, and in Mukalla as well as repairs and infrastructure projects in these ports.
Economic Recovery: Saudi Arabia directly deposited $2 billion in the Yemeni Central Bank to promote economic stabilization and improve the Yemeni people’s quality of life.
This is in addition to a $1 billion deposit that Saudi Arabia contributed in 2014.
Air Bridge: An air bridge from coalition countries to Ma’rib will enable up to six flights of C130s per day. The air bridge will then be available for use by humanitarian organisations to deliver critical humanitarian needs.
Hodeidah Cranes: The Coalition has allowed the instalment of the cranes in the port of Hodeidah.
Safe Passage Corridors: The Saudi-led Coalition is setting up 17 safe passage corridors originating from six points to ensure safe overland transportation of aid to NGOs operating in the interior of Yemen. The opening of Al Khadra and Al Tuwal border crossings between Saudi Arabia and Yemen will further allow the unabated flow of goods to key areas such as Sa’ada, Sana’a, Hajjah, and Amran, it said.
Sanaa Airport: Sanaa Airport will remain open for humanitarian flights.
The coalition will also contribute $30-40 million for expanding the long-term capacities of Yemeni ports to accommodate additional humanitarian shipments. It will also provide $20-30 million to facilitate land transportation of goods and improve road infrastructure. The Saudi-led Coalition’s efforts to open land, sea, and air lanes to Yemen will result in 1.4 million metric tons of imports, including of fuel and food, into Yemen each month, up from 1.1 million metric tons in 2017.
—IANS
by admin | May 25, 2021 | Opinions
For representational purpose only
By Nilova Roy Chaudhury,
There is a huge buzz throughout Saudi Arabia as the hitherto conservative Kingdom — seen as the religious font of Islam and home to its holiest shrines — gets ready to welcome women into its sports stadiums Friday.
The women of Saudi Arabia have entered 2018 with hope unlike ever before, for now they will be allowed greater freedom and perhaps play select sports — and drive. These efforts to bring gender parity are among a series of sweeping social and economic changes being orchestrated by the young Crown Prince, Mohammed bin Salman, to bring Saudi Arabia into a global leadership role in the 21st century.
The year 2017 was transformational for the Kingdom of Saudi Arabia, with a series of initiatives designed to improve gender equality, promote economic diversification, root out corruption and make it more open and attractive to visitors.
Behind a vast majority of these path-breaking initiatives was Prince Mohammed bin Salman, the world’s youngest defence minister, who, at 32, was elevated to the position of Crown Prince last June. Initiatives he has taken form part of the “National Transformation Programme 2020” and the Kingdom’s “Vision 2030”, guidelines of which he outlined last year.
The most momentous of these have been on gender equality. For the first time, girls in public schools will be allowed to play sports and get physical education. The women of Saudi Arabia will be allowed to enter some of the country’s sports stadiums, earlier an all-male preserve, while a royal decree issued last September will allow women the right to drive in the country, beginning June.
In further social transformations, the municipality of the holy city of Madinah will be run by women. The women-only branch of the municipality will provide all the regular services offered by municipalities, including issuance of licences for commercial activities and construction permits, inspection campaigns and investment opportunities, among others.
These measures gained international recognition and Saudi Arabia was elected in 2017 to the UN Women’s Rights Commission for a four-year term.
Other than the major social impact, shrewd economic thoughts are behind these measures, as increasing women’s participation in the workplace will boost the economy and combat corruption.
The “National Transformation Programme 2020” aims to capitalise on the Kingdom’s youth dividend by opening up the country to more employment opportunities through sports and entertainment and to empower women. Opening the country to more entertainment, allowing musical concerts and even a Comic-Con event (a three-day festival of anime, pop art, video gaming and film-related events last year) was part of a wide-ranging push to reform the economy and society and restore what Prince Mohammed bin Salman called the “moderate” face of Islam.
The plan involves changing the education curriculum, increasing women’s participation in the workforce and investing in the entertainment and tourism sectors to create jobs for young people.
Equally far-reaching are efforts to open up the Kingdom to outsiders, by offering tourist visas for foreigners, from this year, and creating facilities to promote the country as a tourist destination. The Red Sea project, which aims to offer an unparalleled tourist destination, will be developed along with leading global hospitality firms and will not be subject to the Kingdom’s conservative rules.
Over 18 million foreigners visited Saudi Arabia last year, almost all on pilgrimage to Mecca. As tourism is the country’s second-most important sector, the Red Sea project will spearhead the diversification of the Saudi leisure industry.
Meanwhile, an ongoing nationwide anti-corruption drive culminated last November with the detention of four ministers, high-profile entrepreneurs and 11 princes, including a son of former King Abdullah and multi-billionaire Alwaleed bin Talal.
This not only consolidated the Crown Prince’s authority, but clearly sent out a message that the royal family was not immune from facing the law, hitherto unthinkable in the Kingdom where the descendants of Ibn Saud were seen as a law unto themselves. That members of the royal family could no longer take their privileges for granted became more apparent when princes, protesting a cut in their water and electricity consumption payments, were taken into custody in the first week of 2018.
“Vision 2030” outlines the Crown Prince’s intent to make the country the centre of the Islamic and Arab world, a hub connecting three continents and an economic and investment powerhouse.
That Prince Mohammed bin Salman is King Salman’s chosen successor and heads the Council for Economic Affairs and Development, which oversees the Kingdom’s economic affairs and also shapes its political and security policies, indicates that manifold measures he has initiated will be carried through.
After taking over as Crown Prince in June 2017, Mohammed signalled his intent to fight radicalisation and combat terrorism, spearheading a boycott of Qatar over its alleged support to terrorism. In October, the prince said the return of “moderate Islam” was central to his plans to modernise the Kingdom.
After a horrific terrorist attack killed over 300 people in Egypt, Mohammed declared a “war against terrorism” at the inaugural meeting of the 41-member Islamic Military Counter Terrorism Coalition (IMCTC) in Riyadh in November saying, “We will not allow such elements to tarnish the image of Islam.”
With global climate change measures intensifying moves towards less dependence on fossil fuels, the Crown Prince’s Vision 2030 aims to drastically reduce the Kingdom’s reliance on oil while reforming, diversifying and privatising the economy.
The Crown Prince plans this year to sell about five per cent government stake in Aramco, the national oil company. He intends to create the world’s largest sovereign wealth fund, worth up to $3 trillion, with money generated by partially privatising Saudi Aramco.
He also plans to create a $500 billion business and industrial zone extending to Jordan and Egypt. The 26,500 sq km city, known as NEOM, will focus on industries including advanced manufacturing, biotechnology, energy, entertainment, food and water. It will be powered entirely with wind power and solar energy.
The country has also announced plans to build a massive entertainment city in Riyadh. The 334 sq km city, almost the size of Las Vegas when ready, will offer cultural, entertainment and sporting activities. The Al-Qiddiya project will be part of Saudi Arabia’s diversification drive and boost economic development by creating major job opportunities for local men and women.
The project perhaps best captures Prince Mohammed bin Salman’s intent to radically transform the face of the Kingdom.
(Nilova Roy Chaudhury is a senior journalist. The views expressed are personal. She can be contacted at nilovarc@gmail.com)
—IANS
by admin | May 25, 2021 | Muslim World
New Delhi : More pilgrims can now proceed for Haj this year as Indias quota of pilgrims has been hiked by 5,000 by Saudi Arabia, the government announced on Tuesday.
The decision by Riyadh came days after Union Minority Affairs Minister Mukhtar Abbas Naqvi signed a bilateral annual agreement for Haj 2018 with Saudi Minister for Haj and Umrah Mohammad Saleh bin Taher Benten.
Now, a total of 1.75 lakh Indian citizens can go for Haj. Last year, Saudi Arabia increased India’s Haj quota by 35,000, the Minority Affairs Ministry said.
Giving credit to the hike to Prime Minister Narendra Modi’s “growing popularity” and India’s strengthened relations with Saudi Arabia, Naqvi said three years ago this quota was 1.36 lakh.
Saudi Arabia has also given a nod to India’s decision to revive the option of sending Haj pilgrims by sea. Officials from both countries will soon discuss all the necessary formalities and technicalities in this regard.
About 3.55 lakh applications have been received for Haj 2018. The Haj Committee of India will finalise the names of those who can go this year for Haj through a lucky draw.
However, around 1,300 Muslim women who have applied to go for the pilgrimage without a ‘mehram’ (male guardian) will be exempt from the lucky draw and all of them will be allowed to go, the Minister said.
—IANS
