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Saudi oil giant's tax bill slashed


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Saudi oil giant's tax bill slashed

Saudi Arabia has agreed to cut the amount of income tax paid by the national oil giant Saudi Aramco.

The company’s tax rate has been slashed from 85 percent to 50 percent.

The cut will reduce Aramco’s bill by tens of billions of dollars.

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The move is designed to make the company more attractive to investors when Aramco goes public with its first share offer next year.

The government aims to sell up to five percent of Aramco, listing the shares in Riyadh and at least one foreign exchange, to raise cash for investment in new industries.

The kingdom is seeking to diversify its economy.