AUSTERITY DRIVE: SAUDI TRIPLES VAT, HALTS HANDOUTS

Riyadh, May 11: Saudi Arabia unveiled plans Monday to triple its value added tax and halt monthly allowances to citizens as part of a series of austerity measures amid record low oil prices and a Coronavirus-led economic slump.

The measures, which state media said would boost state coffers by 100 billion riyals ($26.6 billion), come as the government steps up emergency plans to slash spending to deal with the twin economic blow.

The austerity drive could stir public resentment amid an already high cost of living and intensify scrutiny of lavish multibillion dollar state projects and expenditure including the proposed purchase of English football club Newcastle United.