Saudi Arabia denies plans to increase Zakat on local banks, investors

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The General Authority of Zakat and Tax denied on Friday a Bloomberg report claiming that Saudi Arabia is considering plans to increase an Islamic tax paid by local banks and investors from 10 to 20 percent.

Earlier this week, Bloomberg reported that the tax authority is in talks with investors about raising the fee.

In a press release published by Saudi Press Agency (SPA), the authority said “there are no plans currently to increase the Zakat in the private sector.”

The agency stressed the importance of “taking information from its official sources” and expressed its readiness to respond to the queries from the public, “including taxpayers and investors,” through its social media accounts.

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“The General Authority of Zakat and Tax plays a role in supporting the kingdom’s economy, and its effort to create an attractive investment environment for private sector is in line with Vision 2030,” the SPA report added.

Reaffirming commitments

The authority reaffirmed its commitment to follow the “best methods possible to carry out its duties that are stipulated in Article 3 of the General Authority of Zakat and Tax” which is to collect Zakat in the most efficient way.

The authority also announced the start of a survey of general public opinion on the regulations of collecting the tax.

They added that they received numerous positive responses, and are taking the feedback presented into consideration.