Saudi Arabia has no plans to impose income tax on individuals in the country, the country’s finance minister said as the kingdom diversifies its source of revenues.

“Saudi Arabia is already leveraging various revenue sources, including a value-added tax (VAT), income tax on companies and foreign investors, and zakat on the local population,” Mohammed Al Jadaan said in an interview with Bloomberg on the sidelines of the 2024 World Economic Forum held in Davos on Friday.

The Gulf country has transformed itself over the last five years under the Saudi Vision 2030’s plan to help diversify the economy and reduce reliance on oil. Led by Mohammed bin Salman, the kingdom plans to boost its tourism sector and build world’s tallest building.

“There are no plans to alter these established mechanisms. Instead, the government aims to streamline economic processes to foster a more business-friendly environment,” Al Jadaan said.

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The Saudi finance minister spoke about the sectors such as tourism, technology, and logistics where the country is exploring revenue options. Moreover, efforts are under way to focus on logistical projects to boost connectivity.

He added that water treatment plants were being expanded to ensure full supply to the people.

Saudi Arabia has issued bonds worth $12 billion to address the deficit, which currently stands at approximately 2% of the GDP for the year. Al Jadaan was hopeful of the economic direction, citing positive signs of progress.

The story was originally published in the Gulf News.