The Saudi Finance Minister criticizes the exceptional taxes that governments impose on oil companies
During his participation in the mining conference held in Riyadh, Saudi Finance Minister Mohammed Al-Jadaan criticized the exceptional taxes imposed by governments on oil companies.
Al-Jadaan indicated that it reflects selfish and unproductive thinking, saying: “I think that one of the biggest mistakes that governments make is thinking about achieving unexpected tax gains that are selfish and short-term.”
He continued: “It is important that government policies are considered consistent – predictable and long-term. When we look at government policies and laws related to mining, as is the case in Saudi Arabia, we see that the government does not look at this sector as a revenue-generating sector, but rather looks at it as a sector that will contribute to economic growth.” In the Kingdom, it is very important to evaluate the government’s view of the mining sector.”
He added that the government does not consider the exploitation of companies in the matter of extracting minerals, but rather it wants to develop and diversify the economy, and provide jobs in the labor market through this sector, in addition to increasing exports, saying: “Following this trend will enable the government, of course, to increase revenues.” .
“If we look at the laws, we see that there is financial sustainability… The law provides a sustainable revenue stream, as all the money that the sector earns through licensing fees and even fines does not go to the treasury but rather to a fund that aims to support the industry, so we don’t have Any interest in imposing any fines on this sector,” according to Al-Jadaan.
He explained that the Saudi Industrial Development Fund provides up to 75% of financing for mining projects, and mining projects are exempt from customs duties with regard to equipment, machinery and spare parts, indicating the existence of a number of incentives for the mining sector.
“The last point that I want to highlight is that there is a very clear vision in Saudi Arabia with regard to achieving unexpected tax gains,” according to Al-Jadaan.
