OTTAWA, 19 November — Saudi Arabia yesterday called upon industrialized countries to cut taxes on petroleum products to boost international economic development.
"The time has come for the industrialized states to revise their policy on petroleum products," Hamad Al-Sayyari, governor of Saudi Arabian Monetary Agency, said.
Addressing a meeting of World Bank’s development committee, he added: "A reduction of taxes on petroleum and its byproducts will play an important role in promoting economic activities in Europe."
Such a move, he stressed, would also help offset the imbalance in the distribution of economic resources and improve economic effectiveness.
Riyadh has often pointed to the imposition of the so-called carbon tax by Western governments as the main reason for increases in oil prices.
The Saudi official urged the World Bank to double its efforts to reduce the burden caused by international economic developments on poor countries, especially those which depend on the exports of primary goods.
Sayyari said the slowdown in major industrialized nations would have a tremendous impact on international trade as it will cut prices of primary goods and hamper monetary flow to developing countries.
He called upon industrialized countries to adopt policies that are required to boost economic growth internationally. In this regard, he lauded the measures taken by some countries.
"More such measures are required, especially new monetary and financial policies by European countries," the SAMA governor said, and he called for the lifting of obstacles blocking exports by developing countries.
He commended the efforts made by the Organization of Petroleum Exporting Countries (OPEC) to reduce the difficulties facing the world economy, by bringing international oil prices to the levels acceptable to both producing and consuming countries.
Saudi Arabia, the world’s largest oil producer and exporter, has reiterated its commitment to stabilize global oil market, ensuring adequate supply.
