Custodian of the Two Holy Mosques King Fahd bin Abdul Aziz today chaired the Cabinet’s weekly meeting at Al-Yamamah Palace.
At the outset of the meeting, the King briefed the Cabinet on recent talks held by the King and Crown Prince with King Abdullah II of Jordan. The talks covered recent developments in Arab and Islamic arenas, means to enhance bilateral relations and serve the interests of the two peoples and Arab and Islamic countries, and stalemate of the Middle East peace process due to aggressive Israeli policies. The leaders called upon the international community to be wary of Israeli measures to create a new status quo by building the ‘security’ wall, which threatens to absorb further Palestinian territories and create more refugees who would be displaced into neighbouring countries.
The King briefed the Cabinet on meetings and consultation that took place over the past days with leaders of friendly countries and United Nations envoys.
In a statement to the Saudi Press Agency (SPA) following the meeting, the Minister of Culture and Information, Dr Fouad bin Abdulsalam Al-Farsy, said that the Cabinet reviewed developments in the occupied Palestinian territories and Iraq. The Cabinet reiterated its call for the international community to exert greater efforts to end the suffering of the Palestinian people and to stand firmly against Israel’s violent policies which contravene resolutions of international legitimacy.
On the situation in Iraq, the Cabinet expressed its great concern over the continuation of acts of violence and bombing attacks in Iraq, which have resulted in the killing of innocent people and which have targeted international humanitarian organizations. The Cabinet emphasized the importance of achieving security in Iraq, so that the Iraqi people can realize their aspirations of sovereignty and stability.
The Cabinet then discussed domestic items on its agenda, and issued the following decisions:
Based on recommendations submitted by the Supreme Economic Council and the Shoura Council, the Cabinet approved the new income tax system. The system will be imposed on non-Saudi and non-Gulf Cooperation Council (GCC) companies and individuals who run business in the Kingdom according to the following categories:
· a non-Saudi partner’s shares in a Saudi-based association of capital
· a non-Saudi legal resident who runs business in the Kingdom
· a non-resident who runs business in the Kingdom through a permanent facility
· a non-resident who earns another income from sources in the Kingdom
· a person who runs business in the field of natural gas
· a person who runs business in the field of oil and hydro carbonic materials production
All forms of trade, vocational or handcraft activities, or any similar activity aimed at deriving profit, including movable and immovable properties, are covered by this regulation.
The system established the rates of tax as follows:
· 20% tax rate per unit for: Saudi-based association of capital; non-resident legal persona who runs business; non-resident persona who runs business in the Kingdom through a permanent facility
· 30% tax rate per unit for those designated to invest in the field of natural gas
· 85% tax rate per unit for those designated to run business in the field of producing oil and hydro carbonic materials
This system will become effective 90 days after its publication in the official gazette, when it will nullify the current income tax system which was issued in 1950 and its subsequent amendments.
The Cabinet approved a draft agreement between the Government of the Kingdom of Saudi Arabia and the U.S. Administration to promote commercial and investment relations, for which a draft copy was signed in Washington on 31 July 2003.
The Minister of Higher Education or his deputy was authorized to negotiate with the Syrian side a draft memorandum for cooperation in the field of science and education between the Ministry of Higher Education of the Kingdom of Saudi Arabia and its counterpart in Syria.
The Cabinet approved the National Plan submitted by the Minister of Health, for the destruction of medical waste, noting that the plan will remain in force until ratification of the GCC unified system for managing the waste of health and welfare activities in GCC member states.
The Cabinet approved the appointment of Eng. Mohammed bin Abdul Aziz bin Mohammed Al-Jaryan as Cultural Counsellor at Imam Mohammed bin Saud Islamic University, and Saud bin Ali bin Abdullah Alabdul Aziz as Director General of Financial and Administrative Affairs at the General Presidency of Youth Welfare.
The Cabinet approved the transfer of Eng. Faisal bin Ali bin Salih Al-Zaben, who currently occupies the position of Director General of the Transport Minister’s Office, to the position of Counsellor for Transportation Affairs. Nassir bin Mohammed bin Finais Al-Gahtani, who currently occupies the position of Economic Advisor at the Ministry of Finance, will take the position of Director General at the Transport Minister’s Office.
Source: SPA
