Saudi shops accused of increasing prices due to change shortage

 

Shops in Saudi Arabia are reportedly increasing prices to avoid having to handover small change to consumers following the introduction of value added tax.

The 5 per cent tax rate has caused problems for shop owners in both the UAE and Saudi Arabia since it was implemented on January 1 due to an apparent lack of small coins in circulation.

Abu Dhabi’s Department of Economic Development initially gave shop owners permission to round up prices by up to Dhs0.20 last month before reversing the decision following assurances of sufficient coins from the central bank.

The Saudi Arabian Monetary Authority (SAMA) has similarly assured that there are enough coins distributed in the market and available at banks.

It has asked shop owners to sue banks if they refuse to hand over the coins asked for.

Despite this, Arabic newspaper Makkah reported on Sunday that shops are instead choosing to raise prices so when VAT is calculated there is no need for small coins.

The publication cited the example of a well known bakery in Makkah city, which has increased the price of pastries from SAR1.5 ($0.40) to SAR1.9 so the additional 5 per cent VAT brings the total to SAR2 ($0.53).

Similarly, a fast food restaurant has increased the price of a meal from SAR12 ($3.20) to SAR12.4 so customers pay SAR13 ($3.47) after VAT, it said.

A shop owner told the publication that prices were fixed to round numbers, as small coins were not always available.

However, the kingdom’s Consumer Protection Society said any such increases were not justified and urged customers to inform the Ministry of Commerce and Investment of any unnecessary price increases.

We have 555 guests and no members online

Gulf3maal البحرين: صرف أجور العمال المتأخرة خلال أيام https://t.co/pp8jOMsACD
Gulf3maal رئيس الوزراء يتلقى برقية شكر من رئيس الاتحاد الحر لنقابات عمال البحرين... https://t.co/OqWQG9iH5m
Gulf3maal البحرين: تلاشي ظاهرة «المشاريع المتعثرة» https://t.co/RMafv4YVzu
Gulf3maal WFTU Declaration on the World Day Against Child Labour, 12th june... https://t.co/RZDcEz8uGq
Gulf3maal Colombian garbage man builds library from discarded books... https://t.co/1SApOK05hp
Gulf3maal نمو في حجم التجارة الماليزية بنسبة 5% في 2017 https://t.co/p5H0BLP4O7
Gulf3maal الامارات: تدريب موظفي مستشفى المفرق على لغة الإشارة... https://t.co/9xEHCNAP0F
Gulf3maal البحرين: هند بنت سلمان تفوز بعضوية مجلس إدارة منظمة العمل الدولية... https://t.co/TldB8iqj7f
Gulf3maal البحرين: الشيخة مي تستعرض التحضيرات ليوم المرأة مع «الأعلى للمرأة» و«المهندسين»... https://t.co/cDgjTFyLVc
Gulf3maal البحرين: ولي العهد: مواصلة تعزيز قوة الاقتصاد عبر تطوير الإجراءات والتشريعات... https://t.co/CoqUtBC6Sj
c2.jpg
g3.jpg

Email us at:

This email address is being protected from spambots. You need JavaScript enabled to view it.

Newsletter