Riyadh – Mubasher: Saudi Arabia is set to begin implementing its selective tax (ST) on goods starting 10 June, while the value-added tax (VAT) is slated for 1 January 2018, Saudi Gazette reported on Sunday.
Meanwhile, Saudi newspaper Al Eqtesadiyah reported that revenues from the ST are forecast to reach around SAR 5 billion to SAR 7 billion in the remaining six-and-a-half months in 2017.
The announcement was made by the General Authority of Zakat and Tax following a decision by the General Secretariat of the Gulf Cooperation Council on 23 May.
Selective taxes will be implemented by all GCC member states and will target several items, including tobacco products and power drinks by 100%, as well as fizzy drinks by 50%.
Saudi Arabia’s zakat authority will be responsible for collecting the VAT and ST, as well as ensuring that “all taxpayers comply with relevant laws and that no one evades taxes,” according to Saudi Gazette.
The authority will apply international standards for tax collection and use special technology to ensure precision and accuracy in collections and data.
In April, GCC members approved the regulations for the unified agreement for the VAT and ST.
Annual revenues from the implementation of the ST are expected to reach SAR 15 billion.
The zakat authority’s board is scheduled to meet on Wednesday to issue the executive bylaws for the new taxes.
