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SAMA Calls On Banks not to Misuse Citizen’s Account Allocations

SAMA Calls On Banks not to Misuse Citizen’s Account Allocations

Friday, 5 January, 2018 - 13:45

The Saudi Arabian Monetary Authority (SAMA) addressed local banks not to discount or cut any amounts from the beneficiaries’ dues of the Citizen’s Account in return of any judicial seizure, as an affirmation that Saudi banks have no right to draw amounts from the Citizen’s Accounts in banking accounts.

SAMA underlined the necessity of abiding by this circulation starting from its day of issuance, in addition to lifting previously imposed confiscations on Citizen’s Account beneficiaries' dues, urgently.

This step follows several complaints submitted by the Citizen’s Account regarding confiscating monetary amounts by some local banks, urging SAMA to respond and issue this circulation on Thursday.

As Saudi Arabia begins to apply the Value Added Tax (VAT) and to correct oil prices, the Ministry of Commerce and Investment carried out check-up tours on establishments in various regions in the kingdom to counter any price manipulation. Up to 11,500 establishments were examined and 695 violations were discovered.

All required procedures were taken in cooperation with the government bodies including security bodies, under the supervision of the Consumer Protection to ensure quick intervention and conduction of tours as well as responding to notifications of consumers promptly, throughout the day.

The General Authority of Zakat and Tax (GAZT) has announced that the score of VAT registered-establishments is 90,000 establishments. Most of them are prepared to train employees, comply with the tax system, adopt the accounting system and information technology related to tax-operations in addition to managing records to maintain instruments in the determined application.

Notably, the kingdom started to apply the lowest VAT rate (five percent) since Jan.1 2018, while GAZT is in charge of observing the application of VAT, in cooperation with relevant bodies, including Saudi Customs.

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