Dr. Bandar Bin Hajjar, minister of Haj, meets with US Consul General Anne Casper in Jeddah, Monday. They discussed topics related to American pilgrims. Casper commended the efforts exerted by the Kingdom for US pilgrims to perform their Haj rituals easily and comfortably. — SPA Mufreh Al-Sibei Okaz/Saudi Gazette RIYADH — The volume of money being remitted by expatriates to their countries in the current year is expected to reach SR120 billion, according to a recent study. “About 22 percent of the remittance was earned from cover-up (tasattur) business,” the study carried out by noted economists said. The economists called for stepping up monitoring income of foreigners. They said imposing tax on such remittances is not a real solution to the problem, and it is also not in compliance with the provisions of the agreement signed by the Kingdom with the World Trade Organization (WTO). The best way to contain it is to intensify Saudization and lower the number of foreigners, they said. More foreign capital should also be attracted to offset the huge outflow of money through transfers, they said. Muhammad Abdullah, a member of the study team, said that any move to impose taxes on money transfers would be counterproductive. It is also against the economic freedom being enjoyed by both Saudis and foreigners in the Kingdom, he said. Echoing the same view, Muhammad Al-Suwaidi, director of a financial consultancy office, said: “We are claiming to work on the basis of the fundamentals of economic freedom. Then, how can we impose tax only on expatriates and exclude Saudis?” he asked.
