Saudi Arabia is considering cutting all food, drink and pet tax in 2018, according to a report in the Saudi newspaper Al-Jarida.
The move, announced on Thursday, comes after Saudi Arabia increased the country’s overall food and beverage taxes by 10 percent, which is currently set to expire on January 1.
The kingdom also announced a 50 percent tax on luxury items such as watches and cars, which will come into effect in July.
While the tax will increase the overall tax burden on the average Saudi, the news of the tax cuts is notable because the kingdom has faced criticism for its handling of its economy.
A new report by the Committee for Economic Affairs found that the kingdom’s economy has been contracting for more than a decade, which has led to its oil price plummeting to a record low.
Saudi Arabia’s tax policy has also caused a major rift in the kingdom, as many have criticised the kingdom for charging a huge amount of money to its citizens.
In March, the kingdom cut taxes for the first time in five years, citing economic growth.
The cuts were implemented after a three-year economic growth gap in Saudi Arabia was made public by a Saudi businessman who was arrested for embezzlement and fraud.
The report by Al-Jaba’ newspaper, which cited a source in the country, said the government is also considering cutting the countrys tax on alcohol, which it is estimated to collect about $1.5 billion a year.
According to the report, the government will also consider cutting taxes on food, such as bread, rice and milk.
However, the report did not elaborate on the tax reductions.