Riyadh – Mubasher: The Saudi Ministry of Finance (MoF) forecast to achieve receipts of SAR 23 billion after imposing the value added tax (VAT) as of 2018.
Saudi Arabia will put the VAT into effect by the beginning of 2018.
The VAT is composite, applied on the differential between cost and selling prices of products, it is indirect tax and imposed on production cost.
The MoF expected that the Kingdom would achieve SAR 9 billion after applying the selective tax in 2018.
The ministry estimated that tax revenues from commodities and services will total SAR 85 billion in 2018, jumping 82% from a year earlier.
Receipts from imposing taxes on commodities and services are forecast to hit SAR 124 billion by 2020.
The Kingdom projected collecting SAR 142 billion from the new tax system in 2018, with a 46% growth from 2017, while this amount is forecast to reach SAR 189 billion by 2020.
Implementation of taxes on income, profits, and capital gains is expected to generate about SAR 15 billion in 2018, with a 10.4% increase from the year before, increasing to SAR 18 billion in 2020.
