Remittances send from Saudi Arabia would be capped in line with foreign workers’ incomes, under new proposals from the authorities. The plans are intended to help reduce labour market violations through which expats earn money beyond their official salary and send increasing amounts back to their home country, Arab News reported on Sunday.
Authorities want to control the flow of money out of Saudi Arabia – the World Bank in December ranked the kingdom the world’s second largest remittance source country after the US, with outflows estimated at $37 billion in 2014.
The government has already proposed a 6 percent tax on remittances sent abroad – though the plans are controversial. The new initiative to link remittances with income via expats’ bank accounts has been proposed by the Finance Ministry, Saudi Arabian Monetary Agency and other bodies.
The regulations are expected to be launched soon and will contribute to “violations that increase the illegal income of expats”, the newspaper said.
Source: Arabian Business