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Saudi Arabia expects to generate SAR 35 billion income from the value-added tax (VAT) in 2018, having introduced the levy as of Jan. 1, 2018, Emirates News Agency (WAM) cited a Saudi official as saying.
"A total of SAR 35 billion in revenue is expected during the first year of applying the tax in the Kingdom," said Hamoud Al Harbi, VAT Project Manager at the General Authority of Zakat and Tax (GAZT).
The new levy is part of a wide-ranging Saudi program aimed to boost non-oil income and draw efficiencies across the economy, following a persistent fall of oil prices since mid 2014.
“The imposition of VAT will help raise tax revenue for Saudi government to be utilised for infrastructure and developmental works," he added.
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