Riyadh, Saudi Arabia: According to a report in the Arab News, the Saudi Arabia cabinet approved the Unified Agreement for Value Added Tax (VAT), on January 30, 2017, which will be implemented in all of the six GCC-member states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE) from next year.

In a session chaired by King Salman bin Abdulaziz Al Saud, the Custodian of the Two Holy Mosques, the cabinet, a brief from the Saudi Press Agency said, “approved the unified agreement on value added tax (VAT) and selective taxes and selective taxes in the Gulf Cooperation Council (GCC) Member States”.

The report from Arab News said that “a five-percent levy will apply to certain goods following a GCC agreement last June.”

Following an oil slump that hit the Gulf region last year, the International Monetary Fund (IMF), the report highlighted, had recommended that the Gulf States introduce revenue-raising measures, such as excise and value added taxes, to support its economy.

Read more: Are you ready for VAT?