Saudi Vehicle Imports Fell to Record Low After VAT Hike: Chart
(Bloomberg) -- 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%.
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