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Saudi Arabia estimates revenue of SR85 billion from Goods and Services Tax

Published: Updated:

The Ministry of Finance in Saudi Arabia said that they expect to make a revenue of SR85 billion once the Goods and Services Tax (GST) is implemented in 2018.

This would enhance general budget revenues, an estimated 30% of which are going to be non-oil related revenues. These revenues will support the biggest expenditure of any adopted budget in the kingdom’s history.

The VAT tax, set to be implemented in January of 2018, is also estimated to create revenues of 1.5% to 2.5% of the kingdom’s Gross Domestic Product. This means that yearly revenues will be around SR22 billion to SR35 billion, according to estimates and statistics from financial institutions.

A selective commodity tax which was introduced months ago targeting luxury goods and goods that pose damage to public health and the environment, is expected to create revenues of five to seven billion Saudi Riyals by the end of this year.

With regard to expatriate fees, their expected revenues will rise from 1 billion riyals in 2017 to 24 billion riyals in 2018 to reach 65 billion riyals by 2020.