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Cabinet Announces Program to Control Rising Prices
JEDDAH, 29 January 2008 — Saudi Arabia yesterday announced a 50
percent cut in import tariff and government service charges, and a
five percent inflation allowance for government employees for three
years as part of a 17-point program to control rising prices and
inflation across the country.According to the plan, which has been
approved by the weekly Cabinet meeting chaired by Custodian of the
Two Holy Mosques King Abdullah, allocations for social insurance
will be increased by 10 percent and subsidies for essential products
will continue. Culture and Information Minister Iyad Madani said the
measures were taken following recommendations made by the Cabinet’s
general committee. Recommendations were made taking into
consideration a detailed report on price hike and inflation
conducted by a panel from the Supreme Economic Council, the Saudi
Press Agency said.“The state will bear 50 percent of charges
relating to passports, travel, vehicle licenses, transfer of vehicle
ownership, and for the renewal of residential permits (iqama) of
domestic workers for three years,” Madani said, quoting the Cabinet
decision.“An annual inflation allowance of five percent would be
added to the salaries of government employees... and (awards made
to) pensioners for three years,” the Cabinet said, adding that
subsidies for essential commodities would be revised every three
years. The Cabinet also emphasized that the government would
activate a law to promote fair competition and prevent monopolies.
“The trade agency law will be revised to prevent monopoly,” it
added.
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