Riyadh – Mubasher: Saudi minister of finance said that the decrease of taxes in oil and hydrocarbon producers will not have negative impacts on total government revenues or public services.

Mohammed Al-Jadaan added that the reduced revenues of taxes imposed on companies will be replaced by distributing stable dividends by state-owned firms, according to a statement by the ministry.

Other sources of revenue including profits resulting from investments will also help offsetting the cut tax’s revenues, according to the minister.

Saudi King Salman Bin Abdulaziz issued on Monday a royal decree concerning a range of income tax rates for producers of oil and hydrocarbons, according to Saudi Press Agency (SPA).

Under the new rates, hydrocarbon companies with capital of more than SAR 375 billion will pay a tax of 50%.

“This move carries strategic benefits for Saudi Arabia, its citizens and future generations,” Al-Jadaan said.

The minister noted that the news tax-related order will supports the Kingdom’s position as a global investment powerhouse, to be coherent with the objectives of the Saudi Vision 2030.