Saudi Arabia expects SR35 billion from first year's VAT
The tax is imposed by Saudi Arabia within the framework of a unified agreement endorsed by the member states of the GCC.
Saudi Arabia started on Monday applying the value added tax (VAT) as part of the country's plans to boost revenue. The 5 per cent tax will apply to a wide range of items, including food, clothes, electronics, petrol, phone, water and electricity bills and hotel reservations.
Hamoud Al Harbi, project manager of VAT at General Authority of Zakat and Tax (GAZT), told the Emirates News Agency (Wam) that a total of SR35 billion in revenue is expected during the first year of applying the tax in the country.
The tax is imposed by Saudi Arabia within the framework of a unified agreement endorsed by the member states of the Gulf Cooperation Council (GCC). Saudi Arabia has already imposed the excise tax at 100 per cent on tobacco products and energy drinks, and 50 per cent on soft drinks.
The imposition of VAT will help to raise tax revenues of the Saudi government to be utilised for infrastructure and developmental works, he added, noting that VAT will contribute to address challenges and sustain growth.
He affirmed the punitive measures to be adopted strictly for those who have not registered so far, or who violate the laws.
The Ministry of Commerce and Investment has announced that in cooperation with the General Authority for Zakat and Tax it will intensify inspection tours in markets and commercial firms across the Kingdom to track down irregularities during application of the VAT.
The ban does not include people in age groups ineligible to receive... READ MORE
The Minister of Health made the statement amid the increasing number... READ MORE
Maryam Roohani battles skeptics and stereotypes to live out her dream ... READ MORE
Several countries have announced new regulations for the holiday due... READ MORE
Experts say a well-defined travel policy related to safety rules,... READ MORE
The ban on incoming passengers from India has been in place since... READ MORE
Expo 2020 Dubai Steering Committee praised Sheikh Hamdan’s... READ MORE
Lawyers are seeing surge in enquiries, including some coming from 40- ... READ MORE