Taxes: Kingdom weighs action against Egypt

RIYADH, 30 October — Finance and National Economy Minister Dr. Ibrahim Al-Assaf has said that Saudi Arabia will take reciprocal action if Egypt continues to impose taxes on the Kingdom’s petrochemical exports.

He told reporters that the Foreign Ministry was studying options to take appropriate action if Cairo failed to withdraw the taxes which it imposed on Saudi products without giving any convincing reasons.

Al-Assaf denied reports that Jimmy Gurule, the US Treasury Department’s undersecretary, will visit Europe in a bid to freeze the accounts of some Saudi bankers and businessmen who allegedly financed terrorists.

"Gurule has affirmed that there is no truth in the report," the minister said after talks with Houston Mayor Lee Brown. "The Kingdom plays a leading role in the fight against terrorism and in drying up financial sources of terrorist organizations," he added.

Brown, who is on a visit to the Kingdom, had talks with Crown Prince Abdullah, deputy premier and commander of the National Guard, at his palace in Riyadh.

Referring to the report of the International Monetary Fund which proposed imposition of taxes on both Saudis and expatriates, the finance minister reiterated that the Kingdom has no plan to impose any income tax on Saudis.

However, he pointed out that the government was studying prospects of imposing income tax on an estimated seven million expatriate workers in the country. On the Kingdom’s budget Al-Assaf said: "The continuation of the Kingdom’s revenues in the same level will help it offset the deficit in the current budget." On his part, Mayor Brown emphasized the need for strengthening Saudi-American relations. He pointed out that the fall in bilateral trade this year had no relation with the Sept. 11 attacks in the United States.Brown disclosed that foreign trade agreements have been signed between the Houston city and Saudi ports and airports authorities to facilitate trade exchange.

SAMA report: A report issued by Saudi Arabian Monetary Agency (SAMA) showed that Saudi banks’ combined deposits increased by SR31.5 billion in September this year from SR273.8 billion to SR305.3 billion compared to the same period last year.