Saudi Arabia to impose VAT on gasoline from January

Saudi Arabia will apply a value added tax (VAT) of 5 percent on gasoline starting Jan. 1 2018, the Kingdom’s General Authority of Zakat and Tax (GAZT) said on its official Twitter account, in response to a citizen’s inquiry.

The oil sector, oil derivatives, and local gas are subject to VAT, according to GAZT regulations.

Saudi Arabia and the United Arab Emirates will introduce a 5 percent VAT on Jan. 1 next year, as part of broader fiscal reforms across the region to reduce oil dependence and diversify sources of public revenue.