Saudi Arabia to apply new municipal services fees Feb. 4

Saudi Arabia’s minister of municipal and rural affairs has approved the executive regulations for applying new services fees starting Feb. 4.

Under the new rules, new fees will be levied on occupancy of public pavements and roads, as well as collection of commercial waste at shops, fuel stations, hotels and resorts, with households exempt from these fees.

Fees on occupancy at hotels, luxury apartments and residential resorts will be charged between 2.5 percent and 5 percent of unit fees.

Fees of SAR 3 per square meter (sqm) and SAR 6 per sqm are charged on the construction of residential and commercial buildings, respectively.

Other charges are imposed on licenses for setting up commercial activities per square meter, operation of telecom towers, banks’ automated teller machines (ATMs), as well as hotels and hotel apartments per unit.

The municipal fees will vary based on five categories set by the ministry.