Today, the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz—may God protect him—issued royal decrees stipulating that the state will cover the value-added tax (VAT) for citizens who receive private health care services and attend private schools, The state will also cover the value-added tax on amounts not exceeding 850,000 riyals of the purchase price of a citizen’s first home, The royal decree also stipulates the addition of a cost-of-living allowance of 500 riyals to the monthly allowance for social security beneficiaries for a period of one year, in addition to a 10% increase in the stipend for male and female student citizens for one year.
The Royal Decree states:
In the name of Allah, the Most Gracious, the Most Merciful
No. A/86
Date: 18/4/1439 AH
With the help of Allah, the Most High
We, Salman bin Abdulaziz Al Saud
King of the Kingdom of Saudi Arabia
Having reviewed the Basic Law of Governance, issued by Royal Decree No. (A/90) dated 27/8/1412 AH.
And having reviewed the Law on the Council of Ministers, issued by Royal Decree No. (A/13) dated March 3, 1414 AH.
And having reviewed the relevant laws, royal orders, decrees, regulations, and resolutions.
Based on the presentation made to us by His Royal Highness the Crown Prince regarding the impact that the necessary measures taken by the State to restructure the economy will have on the cost of living for certain segments of the population, and out of our desire to alleviate the burden on our sons and daughters.
We hereby order the following:
First: The annual bonus for citizens employed as civil servants and military personnel shall be disbursed for this fiscal year (1439/1440 AH) effective April 14, 1439 AH, corresponding to January 1, 2018 AD.
Second: A monthly cost-of-living allowance of (1,000) one thousand riyals shall be paid to civilian and military employees for a period of one year.
Third: Payment of a bonus of (5,000) five thousand riyals to military personnel participating on the front lines of military operations along the Kingdom’s southern border.
Fourth: A cost-of-living allowance of 500 riyals will be added to the retirement pensions disbursed by the Public Pension Agency and the General Organization for Social Insurance to eligible citizens for a period of one year.
Fifth: A cost-of-living allowance of 500 (five hundred) riyals will be added to the monthly allowance for social security beneficiaries for a period of one year, provided that this allowance is not combined with the allowance mentioned in ”Fourth.”
Sixth: Increase the stipend for male and female student beneficiaries who are citizens by 10% for a period of one year.
Seventh: The State shall bear the value-added tax (VAT) for citizens who benefit from private health services and private education.
Eighth: The State shall bear the value-added tax on an amount not exceeding (850,000) eight hundred fifty thousand riyals of the purchase price of a citizen’s first home.
Ninth: This decree is hereby issued to the competent authorities for approval and implementation.
Salman bin Abdulaziz Al Saud
In a similar vein, a number of private-sector companies responded to the royal decrees by announcing the payment of a cost-of-living allowance to employees for one year; the amounts of these allowances announced by the companies ranged from 500 to 1,000 per month.
