SR2,400 expat levy ‘slowing investments’

Businessmen and economists have called for the withdrawal of SR2,400 expat levy, saying the measure was one of the main reasons for increasing prices of goods and services, and its withdrawal would boost economy.
Small and medium enterprises that are not targeted for Saudization and companies that hire cleaning and contract workers should at least be exempted from this levy, according some business leaders.
Abdullah Al-Mubti, president of the Council of Saudi Chambers, said a study conducted by a specialized company has found that the levy would not serve the purpose of Saudization and would harm the economy.
He said the CSC’s board of directors has decided to present the study to higher authorities and the Supreme Economic Council (SEC).
The levy has forced many companies to increase prices of their goods and services and would have a negative impact on consumers.
Saleh Kamil, chairman of Jeddah Chamber of Commerce and Industry, also opposed the levy.
“The Saudization program should be reasonable. It cannot be an emotional issue,” said the prominent businessman while criticizing the ministry for imposing the levy on cleaning and contract workers.
“We should not tackle unemployment among Saudis by taking decisions that might have a negative impact on national economy, hiking inflation and prices of goods and services,” he said.
“How can we impose this levy on all workers without classifying them, especially for jobs that cannot be filled by citizens,” Kamil asked.
Siddeek Ahmed, CMD of Eram Group, backed Kamil saying the levy had affected the market, shooting up prices.
“We hope the government would withdraw the levy to reduce the burden on companies and consumers,” he told Arab News.
He said the levy withdrawal would encourage foreign investment.
Mohammed Ali, managing director of Jeddah National Hospital, stressed the need for investment-friendly labor regulations.
“We are ready to employ more citizens but we are not getting qualified Saudi nationals,” he said and urged the Labor Ministry to train citizens to take up various jobs.
“If the Saudi government allows foreigners to do small-scale businesses with Saudi nationals on a 51-49 partnership basis, it would solve many problems including unemployment and illegal cover-up trade,” Ali told Arab News.