Saudi 300% Tax Increase - America out & China In:
In the 1970s Oil Wells has been discovered in Saudi Arabia. Many Super Power countries and wannabe Super Power countries all go towards Saudi Arabia and become Allies to Saudi Arabia. Employment went high in the country. The Saudi’s announce that they will not get any tax from the workers in the country. From 1970 to 2018 people don’t know the meaning of Tax.
But today Saudi Arabia has increased the tax rate by 300%.
What is the reason?
America was an ally to Saudi Arabia. In Saudi Arabia, they are making changes to their troops.
What is the reason?
What is Saudi Arabia going to do next?
To Whom will they give importance to among workers?
We will answer these questions in this post.
Beloved Tamil People. Greetings from Tamil Pokkisham.
Today our Finance minister has given some important announcements. Notifiable for farmers and Expatriate Workers. The benefits which will be done to them. What India wants to do next?. There was a brief announcement. This post will be discussed tomorrow.
So Today’s topic is Saudi Arabia. We have been telling it for two days now.
VAT Valued Added Tax in 2018 was introduced. Till then nobody paid their taxes. The govt said that the people have to pay 5% as tax. The people accepted it. But in 2020 that has been increased to 15%. Whatever product you purchase there will be VAT. So the People who work in the country and across the world this news is a shock.
Saudi Arabia is considered a rich country with Oil Resources. Even Saudi Arabia cant handle the situation now. Getting Tax from People and running the govt situation has come to Saudi Arabia.
So if the govt receives tax from People, it should be a Democratic country.
Is Saudi Arabia a democracy?
No its a Monarchy country. King and prices rule the country. Until now America was the closest Ally to Saudi Arabia. Two days ago America pulls back its weapons and missiles from Saudi Arabia. The reason is Saudi Arabia is not Profitable but a loss. The other reason is Arab countries combined have started thinking against America.
Is Saudi Arabia not needed for America anymore?
The price war. Russia and Saudi Arabia have issues. Russia says that it cannot stop the production as the country’s economy is 60% depended on Oil. So they have to produce Crude Oil in large quantities. Saudi Arabia says that Russia has to cut down on production. Saudi Arabia or other countries didn’t even cut 10% of their production which Russia did. So Russia was their target.
When Russia didn’t agree, they started the Price war. They announced that countries who want to buy crude oil for low money can buy it from Russia. The reasons are Coronavirus and economic depression around the world etc.
Saudi Arabia now announces that it will reduce the price of crude oil. Russia’s target was America. America’s Shell Gas was exporting on a large scale. They were earning profits. But countries who produce Crude Oil are getting losses. Si to bring the situation under control they have to declare Price war. So due to the war, there were issues for Saudi Arabia and America. When the Price war was ongoing the Coronavirus started to spread rapidly.
Many countries stopped buying crude oil. The prices went down. So they stock the crude oil. Many Stored their crude oil in Big Tanker ships. China or India and many countries stored their crude oil. There came a time when there was no one to buy Crude oil so the price drops to negative.
SO when this happened Saudi Arabia dominance fell. Compared to other countries Saudi Arabia imported all food products. They only export Crude Oil. All other products come under their import list. So there is no export but they have to import. Their Foreign Exchange stock begins to reduce slowly.
After 2011 their Foreign exchange money reduced to $464 Billion USD.
Is their foreign exchange alone reducing?
No. They file a budget. In that budget, there was a 9 Billion USD deficit. How are they going to come out of this deficit?. To reduce the 9 Billion USD they increase the tax. Many people in the country had Monthly Subsidiary now they have cancelled this. So slowly they want to reduce their spendings.
Is Crude Oil Price only the reason?
No. Tourism. Mecca and Medina. Many visited this Holy places yearly. To attract the tourists the govt build many Shopping malls and shops. The farming grounds have been transformed into buildings. People cant go to MEcca and Mediana there are no flights. So their income from Tourism also drops. When their Crude Oil profits reduce to 25%, the other profits reduced to 17%. So this is the reason behind the increase in tax.
What do the people think about these taxes?
Most of them are workers. So any product they buy they have to pay an increased tax. In the future, there will a question. Will Crude Oil be needed?
Even after the pandemic, the countries will not request huge amounts of Crude Oil from Saudi Arabia. They already have stocks. Russia announces that they cannot cut their production against Saudi Arabia.
Saudi Arabia has requested OPEC and OPEC+ countries to reduce their production. America was a friend of Saudi Arabia. America asks Iran to send a Satellite why didn’t the Arab countries and Saudi Arabia oppose this?. So America decides that these countries are not on their side. So the Armed Protection to these countries will be withdrawn. Major places which had Military instalments have been taken back to America.
9 to 10 Months ago, Iran’s missile hit Aramco. Due to this Aramco, the plant was unable to refine the oil. There was a war tension. Using the War Tension, America stationed Anti Missile systems. America now says that it will bring back the missile system. America hs warned Saudi Arabia.
Saudi Arabia has placed the Anti Missile System build by them. Saudi Arabia had another plan called Vision 2030. How Saudi Arabia should be in 2030?. This was the plan. So this plan had Saudi Arabia’s Farming, Army and the Infrastructure. There was important info that Weapons or missiles will be built by the country itself. America didn’t like that particular line. So America has decided to go against Saudi Arabia.
The reason is Saudi Arabia and Yemen have issues. Similarly, Saudi Arabia and Iran have issues. If the Americans leave, then the two countries may wage war against Saudi Arabia. So using this situation America can bring in the troops to save Saudi Arabia and get the money out of it. There are so many devised plans for America.
Will America’s plan work?
Nope. From 2017 China has assured Saudi Arabia that they will help them. China now says that Weapons and equipment needed for Saudi Arabia will be given by China. In return, Saudi’s have to help China in some way. The discussions are in going now.
America releases some satellite images. These satellite images are Saudi Arabia’s Desert regions. Saudi Arabia without informing America or the Internationa community has been developing many missiles. China is supporting them. Unmanned Aerial Vehicle, Drones, missiles the production of these are helped by the Chinese.
So America now shows the images and tells Saudi Arabia that they are against America. Saudi Arabia has now started to be active. Countries have said no to Crude Oil. The world is looking for an alternate resource. So Saudi Arabia issue is food.
How Saudi Arabia can grow crops?
Saudi Arabia Agriculture and behalf of Saudi Arabia farming done around the world. Many Billion dollars are expected to be spent on the projects. Comparing 2019 it’s three times greater. The World is changing to be Self Dependent. They have started to give importance to farmers. In Saudi Arabia, this change will come.
People from India went to Saudi Arabia to work in Oil fields. Same Saudi Arabia will welcome farmers into the country. The time is upon us now. Tourism, Oil fields are not enough. Saudi Arabia has understood that they have to do something for food.
This understanding should be in India also. Farmers are the backbone of India.
How we praise them even after lockdown or now?
In farmers are looked after then India will be a successful country.
This post is a Warning post for the ones working in Saudi Arabia. Companies may give you a job or not?
This question should be in your minds. There are a lot of changes happening in the country. Please watch those changes carefully. Decide that those changes will help you in your future.
Comments about this post are Most Welcome.
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