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Saudi Arabia is going to triple the [rate / ratio] of the value added tax (VAT) it [imposes / composes] on goods and services. VAT will increase from 5 per cent to 15 per cent on the 1st of July. The tax was [greeted / introduced] in Saudi Arabia for the first time in 2018. Government authorities say this [drastically / drastic] measure is necessary to curb the effects of the coronavirus pandemic [on / at] the economy. The cut is also part of wider [posterity / austerity] measures to help the economy. Finances of the oil-rich nation have been badly [smacked / hit] as the pandemic has seen oil prices and demand for oil [plummet / summit] . Analysts are reporting that oil revenues this year have fallen by [most / almost] a quarter when compared to the same period [last / past] year.

Another measure the finance ministry has taken in a [bit / bid] to shore up the economy is the suspension of a cost of [lively / living] allowance. This is a [pay / payment] of about $256 per month to state employees. It was introduced to help [offset / onset] rising prices and more expensive petrol at the [pimp / pump] . Saudi's Finance Minister said: "These measures are painful but necessary to maintain financial and economic [stable / stability] over the medium to long term...and to [overcome / overdo] the unprecedented coronavirus crisis with the least damage [possibly / possible] ." A Gulf expert said: "The move will impact consumption and could also [low / lower] the expected revenues. These are pro-austerity and pro-revenue moves rather than pro-growth [once / ones] ."

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