Geneva: Fahd refuses to pay added value tax

La Tribune paper issued in Geneva said Thursday that the Saudi King Fahd Bin Abdul Aziz who spent this Summer almost 3 months in his Palace in Geneva refused to pay a sum of 10 million Swiss Francs (6.8 million dollars) as an "extra" tax on the total spending for him and his companions.

The paper explained that the cashiers of the king stressed that they do not have to pay this tax whose rate is 7.6% in Geneva Canton claiming that the Saudi King was in a work visit.

However, the federal authorities raised this matter to the owners of hotels where the majority of the King's companions stayed in Geneva which said that this is wrong, stressing that the Saudi King and his companions were in a private visit, rather in an official or work visit.

During his stay, the Saudi King did not meet with any official in the Swiss government but he received several heads of states including the Egyptian President Hosni Mubarak.

On this ground, Bern sees that the Saudi King is subjected to the "extra" tax like any other tourist who visits Switzerland, but he can restore back the value of this tax on all his purchases from the country.

King Fahd is currently in his Palace in Marbaya, southern Spain. The day when he had left Geneva on August 14 the main Swiss daily Le Matain front-paged over a picture for the king sitting on his mobile chair "the millions has flied."