Housing ministry denies white land tax is ‘unsuccessful’

Saudi Arabia’s housing ministry said it was too early to write off the white land tax scheme as unsuccessful and rejected claims that the assessment mechanism of determining the fees was too easy on real estate investors, Al-Eqtisadiyah newspaper reported.

The ministry said the objective of the white land tax was not to collect fees, but to find developed land suitable for affordable housing projects.

In November 2015, Saudi Arabia's council of ministers approved a proposal to impose a 2.5 percent white land tax on urban areas in a move to fight monopolization, high prices and to solve the housing shortage problem.   

The expected revenues from the white land tax, which was disclosed by housing minister Majed Al Hogail, were only estimates based on the tax rules and regulations, the ministry said.