Government identifies unused land to be taxed

WHITE LAND: Underdeveloped land has been identified in several cities to be taxed under the new regulations. (Reuters)

RIYADH: The Ministry of Housing has identified unused land, or white land, in Riyadh, Jeddah and Dammam that will be taxed under the new regulations that is expected to released later this year, according to a report in a local publication on Monday.

The source told Al-Eqtisadiah newspaper that the full regulations and list of land would be announced in various media outlets soon. This is expected to clear up any questions owners of this land have about the process.
The “Tax Law on Vacant Land” states that the aim is to increase the availability of land for development to achieve a balance between supply and demand; provide residential land at a reasonable cost; and encourage fair competition and combat monopoliztic practices.
Minister of Housing Majed Al-Huqail has said that the ministry is compiling a list of the white land that would be taxed in coordination with five ministries, and is being finalized at the Experts Commission and Council for Economic and Development Affairs.
The imminent publication of the regulations comes at a time when the price of land is dropping in the country. The ministry has stated that the tax imposed would be spent to improve public services.
The plan to place an annual 2.5 percent tax on unused land was announced by the government in November last year. The government has been carrying out consultations across the Kingdom before finalizing the Implementing Regulations.
The regulations would be announced by the Cabinet and cover details such as the timeframe for the gradual implementation; guidelines for determining which land holdings, and the extent, will be subject to the tax; and criteria upon which the applicability of the tax is dependent.
There would also be controls announced on fair application and the prevention of tax evasion; and designation of which lands fall within “urban boundaries.”
Such land will likely be within built-up areas, which have access to services and utilities, according to reports.