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Business & Economy

$810bn generated from taxes in Arab world

An Egyptian trader reads a newspaper at the stock market in Cairo, Egypt, in this file photo. (AP)

JEDDAH: Revenues generated from different taxes in the Arab world amounted to around $810 billion from 2011 to 2015, according to an Al-Eqtisadiah newspaper report based on preliminary data issued by the Arab Monetary Fund (AMF).
According to the AMF, tax revenues decreased in 2015 by 4.9 percent compared to 2014 due to the decrease in revenues from income and profit taxes — from $64.1 billion to $58.2 billion — that was the result of low economic activity in many Arab countries.
Profit and income taxes represented the largest chunk of the $810 billion revenues — 35.2 percent, or $266.6 billion.
Production and consumption taxes constituted 34.9 percent, or $285.6 billion. Revenues from customs fees on foreign trade represented 15.1 percent, or about $122.2 billion.
In 2015, tax revenues constituted 6.7 percent of the total gross domestic product (GDP) of Arab countries. In the same year, production and consumption tax revenues increased by 8.4 percent to $62.8 billion due to strong consumer spending.
Revenues from different taxes are the main source of income for Arab countries.
However, Arab Gulf countries are less dependent on taxes.

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