King of Saudi Arabia, Salman ordered a new allowance of 1,000 riyals per month for civil servants (PNS) for a year. This is in compensation for the rising cost of living after the government raised fuel prices and imposed value added tax (VAT).
In the royal decree published by state media as reported by news agency Reuters, Saturday 6/1/2018), King Salman also ordered a grant of 5,000 riyals for military personnel serving on the frontline of the battle with Houthi rebels in Yemen.
The Saudi government raised fuel prices by almost double on Monday (1 / 1) and as part of a broad reform initiative intended to enrich its economy. 5 percent VAT on a number of goods and services also came into force on the same day.
In the decree it was mentioned that the provision of this new allowance in recognition of "increased living costs for some societies following important steps which the state does to restructure the economy. "
King Salman also ordered the state to bear VAT in a number of situations, including health care and educational bodies. Benefits for students, pensioners and recipients of social security were also increased.
The decree made no mention of the total cost of the new allowance. But it seems that the numbers are still below the previous allowances that Saudi kings have ever given.
(ita / ita)