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OFWs in Saudi rant over 5% VAT in fuels, remittance fee

Eric Cendana, an ambulance driver attendant in Saudi Arabia, will have to adjust his expenses in the kingdom following the five percent value-added tax (VAT) rolled out in the kingdom last January 1, 2018.

“Medyo mataas na ang presyo ng gasolina ngayon…Ngayon tipid- tipid na, dati walang problema, ngayon tipid-tipid na,” explained

Cendana is one of our overseas Filipino workers (OFWs) in Saudi who worry about the impact of the tax on their daily expenses.

Many of them expressed their sentiments about the tax implementation as seen on ABS-CBN News report.

“Malaki ang mababawas sa income natin dito sa Saudi Arabia,” said Valentin Albuen, Technician.

“Parang mag-iisip ka na rin ba kung ano ang mangyayari sa atin in the near future,” stated Darlene Monterey, Cardiac ICU Nurse.

The fuel price of Octane 91 increased about 80 percent per liter, or SR1.37 from 75 halalas (approximately P10 to P18).

While the 95 Octane increased about 125 percent, or SR2.04 from 90 halalas (approximately P12 to P27).

On weekly basis, expats in Saudi are now spending almost SR227 or P2,946 for the fuel alone.
However, the price for diesel for transport is still at SR0.47 or P6.24; while the Kerosene price remains at SR0.64 or P8.50.

Even the service charge on remittances for expats is now priced at SR15.75 or P199.21 up from SR15 or P209.17.

Food and water consumption, utilities, as well as other basic services are also charged with VAT.

Saudi Arabia, along with the United Arab Emirates, marks this year as a first in their history to impose tax on all their goods and services.

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