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Indians in Saudi Arabia to be hit by “dependent tax”

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Indians in Saudi Arabia to be hit by “dependent tax”

[vc_row][vc_column][vc_column_text]Falling economy forces Riyadh to impose new taxes

The Saudi government, faced with growing economic crisis due to low oil prices, war against Yemen, providing Army for protecting Bahrain government from opposition onslaught and branding itself as “leader of Muslim world”, has started tough measures against expat workers in the Kingdom.

From July 1, every expat living with his family in that country will have to pay 100 riyals (approximately ₹1,723) for each member as “dependent fee” every month. The fee amount will gradually increase by 100 riyals each year till 2020, meaning that an employee will then have to shell out 400 Saudi Riyals for each dependent every month. An employee living with wife and two children, in 2020, will have to pay 1200 riyals (Approximately ₹21,000 with present exchange rates) every month as dependent fee.

Saudi Arabia gives family visa to anyone with a salary of 5000 riyals (approximately ₹90,000) and above. The average employee would hardly be able to afford keeping his family in the Kingdom.

There are nearly 41 lakh Indians in Saudi Arabia, the largest expat group in that country. This is also the largest number of Indians living in a single country abroad. Ten lakh of them are from Andhra Pradesh and Telangana.

An Indian expat living in Dammam recently said that some families have made plans to return to Hyderabad as they cannot afford to stay there any longer.

According to migrant rights activist Bheem Reddy Mandha, several families have already returned to India in the past four months. He was quoted saying “the men have become forced bachelors”.

Reports indicate that life in Saudi Arabia is becoming tougher. From July 1, the day when GST will be implemented in India, prices of beverages will increase by 100 percent. Heavy Gunah (sin) tax on tobacco products has also been recently implemented.

In recent months a large number of foreign workers were laid off because of the fall in crude oil prices. Thousands of workers from India, Pakistan, Bangladesh and Philippines faced hunger due to non-payment of salaries. Indians employed in construction, Information Technology, medical infrastructure and other sectors are believed to be rethinking their plans on staying back in that country.

To a query on the probable impact on Indian expats a senior official in the Ministry of External Affairs said nothing could be said as yet. But it will affect all expats, he added.

Ironically, the hit to Indians comes after Prime Minister Narendra Modi’s April visit to Saudi Arabia where King Salman conferred him country’s highest civilian award – the King Abdulaziz Sash. During the visit Modi also addressed Indian workers and heard their grievances.

The new taxes were announced weeks after US President Donald Trump visited Saudi Arabia signing bilateral deals worth tens of billions of dollars. A Saudi citizen, most probably living outside, criticized “Trillions for Trump and taxes for citizens”.

Saudi activist Essam al-Zamel wrote on his twitter account “after the selective tax, which come into effect in a few days, whoever smokes two packs of cigarettes a day will pay around 1500 riyals a month, equivalent to a car payment”.[/vc_column_text][/vc_column][/vc_row]

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Trump waives Russia-related sanctions, tariffs in relief for India

Donald Trump has waived several Russia-related sanctions, restrictions and duties under a new US law, potentially easing tariff pressure on India and China, two major buyers of Russian energy.

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US President Donald Trump has waived many Russia-related sanctions, restrictions and duties, offering relief to India and China amid the threat of additional tariffs over their purchases of Russian oil and gas.

The waiver came one day before the measures were due to take effect under a bill signed into law by Trump last month. The legislation sought to increase pressure on Russia by enabling additional tariffs on countries buying its oil and gas.

Trump issued an executive order waiving many Russia-related measures, easing the immediate threat of additional tariffs for major buyers of Russian oil and gas, including India and China.

What Trump’s waiver means for India and China

India and China have been among the largest buyers of Russian energy, putting them at risk under the new US legislation.

The law authorised the US president to impose tariffs of up to 100% on goods from major importers of Russian oil and gas. Such penalties were intended to pressure countries to reduce their purchases of Russian energy and limit Moscow’s revenue during the Ukraine war.

The waiver eases the immediate threat posed by those provisions. However, it should not be interpreted as a permanent removal of every possible Russia-related sanction or tariff. The scope of the decision is defined by the measures covered under the executive order.

What is the Lindsey Graham Act?

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was enacted to expand Washington’s ability to penalise Russia and countries supporting its energy trade.

The legislation allows the US president to impose tariffs of up to 100% on goods imported from countries covered by its provisions on Russian oil and gas purchases.  It also provides for sanctions targeting Russian officials, financial institutions and energy interests, alongside measures against entities involved in helping Russia evade existing restrictions.

The legislation is named after the late US Senator Lindsey Graham, who was a prominent advocate of stronger economic pressure on Russia over its invasion of Ukraine.

Importantly, the law gave Trump discretion over the use of its tariff provisions rather than automatically imposing the maximum tariff on every country buying Russian energy. It also included a mechanism allowing the president to waive measures when he certifies that doing so serves US national interests.

Why the decision matters amid the Ukraine war

The US legislation was intended to increase pressure on Russia by targeting both its energy revenues and countries that continued to purchase its oil and gas.

For India, the potential tariffs had added another point of friction in its trade relationship with Washington. New Delhi has maintained that its energy purchasing decisions are guided by national interests and energy security.

China, another major importer of Russian energy, had also faced the prospect of additional trade penalties under the law.

Trump’s decision to waive several measures reduces the immediate tariff threat for affected countries. However, the move does not itself resolve the wider dispute over Russian energy purchases or the continuing war in Ukraine. The administration’s future decisions will determine how the relevant provisions are applied.

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Magnitude 7 earthquake strikes Russia’s Kamchatka Peninsula

A magnitude 7 earthquake struck Russia’s Kamchatka Peninsula region on Friday. The initial report placed the earthquake at a depth of 140 kilometres.

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A magnitude 7 earthquake struck Russia’s Kamchatka Peninsula region on Friday, October 16, according to the European-Mediterranean Seismological Centre (EMSC).

The initial report placed the earthquake at a depth of 140 kilometres (approximately 87 miles). Details about the impact of the earthquake, including any damage or casualties, were not immediately available in the initial report.

Earthquake strikes seismically active Kamchatka region

Russia’s Kamchatka Peninsula is a seismically active region where earthquakes occur because of tectonic activity.

The latest earthquake was reported by the EMSC, which provided the initial magnitude and depth estimates. Further information about the situation on the ground was not available in the initial report.

What is known so far

  • Location: Kamchatka Peninsula region, Russia
  • Magnitude: 7.0
  • Date: Friday, October 16, 2026
  • Reported depth: 140 kilometres
  • Casualties and damage: Not provided in the initial report

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S Jaishankar says India is a natural option for Russia amid Europe tensions

External Affairs Minister S Jaishankar said India remained a natural option for Russia as Moscow increasingly turned towards Asia amid strained relations with Europe. He highlighted the continuity of India-Russia ties and their significance for the balance of power in Asia.

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External Affairs Minister S Jaishankar has described India as a natural option for Russia as Moscow increasingly looks towards Asia amid deteriorating relations with Europe. He said India’s longstanding relationship with Russia had remained steady despite significant changes in the international strategic landscape.

Jaishankar made the remarks during a conversation with John Micklethwait, editor-in-chief of the Bloomberg New Economy Forum. He discussed how the Russia-Ukraine war had affected Moscow’s relationship with Europe and contributed to Russia’s growing focus on Asia.

Jaishankar highlights Russia’s shift towards Asia

Jaishankar said Russia’s relationship with Europe had become deeply strained following the Ukraine war. He noted that Russia had historically viewed itself as a European country and placed considerable importance on its relations with Europe and the United States.

However, the conflict had pushed Moscow to look increasingly towards Asia,with much of that shift directed towards China.

The minister said it was in India’s interest, as well as the wider world’s interest, for Russia to maintain multiple relationships in Asia rather than having its options concentrated in one direction.

Against this backdrop, he described India as a natural partner for Russia, pointing to the longstanding nature of the relationship between the two countries.

India-Russia ties remain steady despite global changes

Jaishankar said India and Russia had maintained a consistent relationship over several decades. He emphasised that New Delhi continued to engage with Moscow even as the global order and Russia’s strategic calculations evolved.

According to the minister, India was reassuring Russia that the relationship built over nearly eight decades remained steady despite the changes in Moscow’s relations with Europe and the wider West.

He stressed that India was not passing a value judgment on those changes but was continuing its bilateral engagement with Russia.

Jaishankar said the relationship had benefited both countries and contributed to the balance of power and the broader status quo in Asia. 

Why the relationship matters for Asia

Jaishankar’s remarks highlighted India’s position in Russia’s changing regional outlook. As Moscow increasingly turns towards Asia, India continues to maintain its longstanding ties with Russia while navigating a changing international environment.

The minister’s comments underscored the importance he placed on preserving India-Russia ties and ensuring that Russia maintained multiple relationships in Asia. 

His assessment came against the backdrop of strained Russia-Europe relations following the war in Ukraine, which has reshaped Moscow’s engagement with Western countries and increased its focus on Asian partners.

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