Saudi Arabia plans to increase customs duties on steel products
Saudi Arabia plans to increase customs duties on a variety of steel products to the maximum “bound rates” permitted by the World Trade Organisation.
Effective 10 June, the customs duty on billet will rise from 5% to 10%, the tariff on hot rolled flat products will increase from 5% to 10-15%, depending on the product, and on coated flats from 5% to 12-15%, depending on the product. The tariff on wire rod will hike from 10% to 20%, and on rebar will grow from 10% to 15%. The full list of products affected is available from Saudi Customs.
The tariff increase comes at a time when Saudi government spending plans have been drastically curbed by the reduction in oil prices and economic impact of the Covid-19 pandemic.
The government earlier announced its intention to treble VAT to 15% from 1 July as a way of raising additional revenue.