The Reading / Listening - VAT - Level 5

Saudi Arabia will triple the rate of value added tax (VAT) imposed on goods and services. VAT will go up from five to 15 per cent in July. The government said this drastic measure is necessary to curb the effects of coronavirus on the economy. It is also part of wider austerity measures. The oil-rich nation's finances have been badly hit by the pandemic. Oil prices and demand for oil have plummeted. Saudi Arabia introduced VAT for the first time in 2018. Analysts report that oil revenues this year have fallen by almost a quarter when compared to the same period last year.



Saudi's Finance Ministry has also suspended the cost of living allowance in a bid to support the economy. This is paid to state employees to help with rising prices and more expensive petrol. The Finance Minister said: "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible." A Gulf expert said the measures would impact consumption and could lower revenues. He said Saudi needs pro-growth measures, not pro-austerity ones.

Try the same news story at these levels:

    VAT - Level 4 or  VAT - Level 6

Sources
  • https://finance.yahoo.com/news/saudi-arabia-raise-vat-threefold-030733064.html
  • https://www.bbc.com/news/business-52612785
  • https://www.msn.com/en-us/news/world/saudi-triples-vat-suspends-handouts-in-virus-led-austerity-drive/ar-BB13SVjm


Make sure you try all of the online activities for this reading and listening - There are dictations, multiple choice, drag and drop activities, crosswords, hangman, flash cards, matching activities and a whole lot more. Please enjoy :-)



Phrase Matching

Paragraph 1

  1. imposed on goods
  2. curb the effects
  3. part of wider austerity
  4. finances have been badly hit
  5. prices and demand for oil
  6. oil
  7. fallen by almost
  8. compared to the same
  1. a quarter
  2. measures
  3. have plummeted
  4. period last year
  5. of coronavirus
  6. and services
  7. revenues
  8. by the pandemic

Paragraph 2

  1. suspended the cost of
  2. These measures are painful
  3. over the medium
  4. the unprecedented
  5. with the least
  6. the measures would
  7. lower
  8. pro-growth measures, not
  1. pro-austerity ones
  2. coronavirus crisis
  3. living allowance
  4. revenues
  5. impact consumption
  6. but necessary
  7. to long term
  8. damage possible

Listening — Listen and fill in the gaps

Saudi Arabia will (1) ___________________ of value added tax (VAT) (2) ___________________ and services. VAT will go up from five to 15 per cent in July. The government said (3) ___________________ is necessary to curb the effects of coronavirus on the economy. It is also part of wider austerity measures. The oil-rich nation's finances have (4) ___________________ by the pandemic. Oil prices and demand for oil have plummeted. Saudi Arabia introduced VAT for the first time in 2018. Analysts report (5) ___________________ this year have fallen by almost a quarter when compared to the same (6) ___________________.

Saudi's Finance Ministry has also suspended the (7) ___________________ allowance in a bid to support the economy. This is paid to state employees to help (8) ___________________ and more expensive petrol. The Finance Minister said: "These measures are (9) ___________________ to maintain financial and (10) ___________________ the medium to long term...and to overcome the unprecedented coronavirus crisis with the (11) ___________________." A Gulf expert said the measures would impact consumption and (12) ___________________. He said Saudi needs pro-growth measures, not pro-austerity ones.

Put a slash (/) where the spaces are

SaudiArabiawilltripletherateofvalueaddedtax(VAT)imposedongood
sandservices.VATwillgoupfromfiveto15percentinJuly.Thegovernme
ntsaidthisdrasticmeasureisnecessarytocurbtheeffectsofcoronavirus
ontheeconomy.Itisalsopartofwiderausteritymeasures.Theoil-
richnation'sfinanceshavebeenbadlyhitbythepandemic.Oilpricesand
demandforoilhaveplummeted.SaudiArabiaintroducedVATforthefirst
timein2018.Analystsreportthatoilrevenuesthisyearhavefallenbyalm
ostaquarterwhencomparedtothesameperiodlastyear.Saudi'sFinanc
eMinistryhasalsosuspendedthecostoflivingallowanceinabidtosupportt
heeconomy.Thisispaidtostateemployeestohelpwithrisingpricesand
moreexpensivepetrol.TheFinanceMinistersaid:"Thesemeasuresare
painfulbutnecessarytomaintainfinancialandeconomicstabilityoverth
emediumtolongterm...andtoovercometheunprecedentedcoronavir
uscrisiswiththeleastdamagepossible."AGulfexpertsaidthemeasures
wouldimpactconsumptionandcouldlowerrevenues.HesaidSaudinee
dspro-growthmeasures,notpro-austerityones.

Student survey

Write five GOOD questions about this topic in the table. Do this in pairs. Each student must write the questions on his / her own paper. When you have finished, interview other students. Write down their answers.

(Please look at page 12 of the PDF to see a photocopiable example of this activity.)

Discussion — Write your own questions

STUDENT A’s QUESTIONS (Do not show these to student B)

(a) ________________

(b) ________________

(c) ________________

(d) ________________

(e) ________________

(f) ________________

(g) ________________

(h) ________________

STUDENT B’s QUESTIONS (Do not show these to student A)

(i) ________________

(j) ________________

(k) ________________

(l) ________________

(m) ________________

(n) ________________

(o) ________________

(p) ________________





Free writing

Write about this topic for 10 minutes. Comment on your partner’s paper.

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Answers

(Please check your answers against the article above.

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