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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]

Latest world news

Trump says Iran agrees to never have nuclear weapons, rejects $300 billion fund claim

Donald Trump said Iran has agreed to never possess nuclear weapons under a proposed framework, while dismissing reports that the US would provide Tehran with a $300 billion reconstruction fund.

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Donald Trump statement

US President Donald Trump has said that Iran has agreed to a commitment that it will never develop or possess nuclear weapons, describing it as a central element of a proposed understanding between Washington and Tehran.

Speaking about the ongoing diplomatic efforts, Trump also rejected reports suggesting that the United States planned to provide Iran with a reconstruction or investment package worth $300 billion. He described such claims as false and said no such arrangement had been agreed.

The remarks come as discussions continue over a broader framework aimed at easing tensions between the two countries. According to Trump, the understanding would ensure that Iran remains without nuclear weapons while opening the door for future engagement if the terms are respected.

Questions remain over final agreement details

Despite Trump’s comments, several aspects of the proposed arrangement remain unclear because the full text of the agreement has not yet been made public.

Reports indicate that negotiations have involved discussions on sanctions relief, access to frozen assets and potential economic measures linked to Iran’s compliance with future commitments. However, the exact scope of these provisions has not been officially confirmed.

Another key issue is how compliance would be monitored. Details regarding inspections, verification mechanisms and the handling of Iran’s existing nuclear materials have yet to be fully explained.

Further negotiations expected

Officials have suggested that discussions on technical nuclear matters could continue even after the signing of an initial memorandum of understanding. Such talks would likely focus on implementation and verification measures.

The proposed framework is being closely watched internationally, as any agreement between the United States and Iran could have significant implications for regional stability and global non-proliferation efforts.

For now, Trump has maintained that the core objective remains clear: ensuring that Iran never acquires a nuclear weapon while denying reports that Washington has committed to a multibillion-dollar reconstruction fund.

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LATEST SPORTS NEWS

USA start FIFA World Cup 2026 with dominant 4-1 victory over Paraguay

The USA opened their FIFA World Cup 2026 journey with a dominant 4-1 victory against Paraguay, earning three valuable points in Group D.

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The United States kicked off their FIFA World Cup 2026 campaign in impressive fashion, securing a commanding 4-1 victory over Paraguay in their Group D opener at SoFi Stadium in Los Angeles.

Playing in front of a passionate home crowd, the hosts delivered an attacking display to collect all three points and make an early statement in the tournament. The match also marked a significant occasion as the USA hosted part of the World Cup opening festivities before turning attention to the action on the pitch.

The Americans took control early and maintained pressure on Paraguay throughout the contest. Their attacking movement and clinical finishing helped them establish a comfortable lead, while Paraguay struggled to contain the hosts’ pace and creativity in the final third.

USA seize control after fast start

The United States settled quickly and found success going forward, creating several opportunities through quick passing and aggressive pressing. Their attacking approach paid off as they built momentum and gradually stretched Paraguay’s defence.

Paraguay attempted to respond and managed to get on the scoresheet, but the South American side found it difficult to match the intensity shown by the hosts. The USA continued to create chances and added further goals to put the result beyond doubt.

With the victory, the United States moved to the top section of Group D and gained an important boost in confidence ahead of their upcoming fixtures in the tournament.

Strong opening result for hosts

A winning start is particularly important in a World Cup campaign, and the USA achieved exactly that with a comprehensive performance. The result gives the hosts valuable momentum as they prepare for the next stage of group play.

For Paraguay, the defeat means they will need a strong response in their remaining group matches to keep their hopes of progressing to the knockout rounds alive.

The FIFA World Cup 2026 is being jointly hosted by the United States, Canada and Mexico, with the tournament featuring an expanded format and more participating teams than previous editions.

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Latest world news

Jaishankar raises deaths of three Indian sailors with Marco Rubio, lodges strong protest

External Affairs Minister S Jaishankar conveyed India’s strong protest to US Secretary of State Marco Rubio over an attack that killed three Indian sailors, stressing that lethal action against commercial shipping is unjustified.

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External Affairs Minister S. Jaishankar on Saturday spoke with Marco Rubio and conveyed India’s strong protest over recent attacks on commercial vessels in the Gulf that resulted in the deaths of three Indian sailors.

According to reports, Jaishankar told Rubio that the use of lethal force against commercial shipping was not justified and underlined India’s serious concerns regarding the safety of civilian seafarers operating in the region. The conversation came days after three Indian mariners were killed in an attack on the Palau-flagged tanker Settebello near the Oman coast.

The incident has triggered diplomatic engagement between New Delhi and Washington. India had earlier summoned a senior US diplomat to register its concerns and seek accountability following the attack. The Ministry of External Affairs has emphasized that actions endangering civilian shipping undermine maritime safety and stability in a strategically important region.

India reiterates concern over maritime safety

India has stressed the importance of protecting civilian seafarers and ensuring the security of international maritime commerce. Officials have expressed concern over multiple incidents involving Indian crew members in West Asian waters in recent days.

The deaths of the three sailors have also sparked calls within India for stronger diplomatic efforts to safeguard Indian nationals working aboard commercial vessels in conflict-affected maritime zones.

Background of the incident

The attack involved the tanker Settebello, which was operating near Oman when it was struck during ongoing tensions linked to the conflict involving Iran and maritime operations in the Gulf region. Initial reports indicated that Indian crew members were among those affected, and later confirmations established that three Indian sailors had died in the incident.

India has maintained that civilian shipping should not become a target and has continued diplomatic outreach to ensure the safety and welfare of Indian seafarers working across global shipping routes.

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