Saudi Arabia 'family tax': What is it? How will it affect 41 lakh Indians?

Expat levy is seen to boost kingdom's economy amid low oil prices. Photo: AFP

NEW DELHI: Expats in Saudi Arabia are planning to send their dependents back as the kingdom is set to start collecting a new monthly fee of 100 riyals ( approx. Rs. 1,700) for every expat dependent, with plans to increase the fee gradually next year until 2020. Around 41 lakh Indians currently working in Saudi Arabia will be facing a heavy financial burden from July 1, date the expatriate levy will come into force. An Indian expat living in the country with his wife and one child would have to pay 200 riyals (approx. Rs 3,437) a month. Moreover, this tax is set to go up by 100 riyals per dependent every year till 2020. Dependents of expats will each incur a monthly fee of SR200 from July 2018 onwards. From July 2019 they will have to pay SR300 (approx. Rs 5,158)  per dependent and so on. What adds to the woes of foreigners in Saudi Arabia is that the amount needs to be paid in advance for the entire year. Migrant rights activist Bheem Reddy Mandha told TOI that several people have sent their families back home in the last few months. "The men have become forced bachelors," he said. "Some families I know have made plans to return to Hyderabad as they feel they cannot afford to stay there any longer," TOI quoated Mohd Taher, a computer professional who lives in Dammam, as saying. Expat levy is seen to boost kingdom's economy amid low oil prices.