Saudi Arabia's white-land tax to fund infrastructure for government-led housing project

Posted on 17th April 2019

Saudi Arabia's white-land tax to fund infrastructure for government-led housing project
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According to *Constructionweekonline news report, millions of dollars generated by Saudi Arabia's white-land tax will be used to fund infrastructure for a government-led housing project in the north of Riyadh.

Saudi Arabia’s Ministry of Housing said it would spend $6.6m (SAR25m) to implement infrastructure for a project west of King Khalid International Airport in Riyadh – with the cash coming from revenue generated by its Idle Land Tax System.

The Idle Land Tax, also known as the white land tax, came into force in 2016. It imposes a levy on undeveloped plots of land in big urban areas, such as Riyadh, Jeddah, and Makkah.

The law says that revenue generated by the white land tax should be invested into Saudi Arabia's construction projects to meet demand in the kingdom for mid-market housing.

In a statement on the Ministry of Housing’s website, the government said it had a plan to use tax revenue to fund the development of infrastructure projects and public services for a string of schemes nationwide.

This will include housing projects, the construction of power stations, setting up utility services such as water and electricity, building water treatment plants, and other municipal services residents may need.

The government is currently in Phase 1 on its plan to use tax revenue for housing and infrastructure projects. The programme has been rolled out in Riyadh, Jeddah, Dammam, and Makkah.

*News source: https://www.constructionweekonline.com/projects-tenders/180937-saudi-invests-66m-white-land-tax-revenue-in-riyadh-housing

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