Saudi Aramco's truck are seen during exploration in the Empty Quarter, Saudi Arabia November 18, 2013. Picture taken November 18, 2013. Saudi Aramco/Handout via REUTERS
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Saudi Arabia is considering a flexible tax system for state-owned oil company Aramco that would increase royalty payments when crude prices rise, according to people familiar with the deliberations.Aramco has proposed to initially set the royalty at 20 percent – the same rate as today's fixed rate – and increase it automatically if oil prices rise significantly.On top of the royalty, Saudi Arabian Oil Co., as Aramco is formally known, pays income tax on profit, which the government recently cut to 50 percent from 85 percent.The Saudi Finance Ministry directed questions on the flexible royalty to Saudi Aramco.
FOLLOW THIS ARTICLE