Saudi family tax creates big financial burden for Indians; 100 riyals for each dependent per month

New Delhi: The Indians expats in Saudi Arabia finding it extremely difficult to sustain their families in Saudi Arabia –thanks to the introduction of a new family tax, a news paper has reported.

As per a report in the Times of India Saudi Arabia is set to introduce a monthly 'dependant fee' from July 1.

Under the regime, the kingdom would charge 100 riyals (approx. 1723.42 as on Wednesday) per month for each dependent.

“Saudi Arabia issues the family visa to people with a salary of 5,000 riyals (approx. Rs 86,000) per month. So, an Indian expat living in the country with his wife and two children would have to pay 300 riyals (approx. Rs 5,100) a month,” the TOI report said.

The tax is set to go up by 100 riyals per dependent every year till 2020, the paper said.

“This means that, in 2020, a family would have to shell out 400 riyals (approx. Rs 6,900) for each dependant every month,” it added.

What is more burdensome for these expats is that the fee has to be paid in advance.

Around 41 lakh Indians are working in over 400 Indian companies in Saudi Arabia. The kingdom attracts a lot of Indian workers because so far it has not imposed any tax on income earned.