Saudi Arabia Denies Plans To Increase Islamic Tax On Private Sector

Saudi Arabia clarified it has no plans to raise Zakat on the private sector after Bloomberg reported last week that the kingdom was considering to double the rate.

Bloomberg had reported Saudi Arabia was considering raising the tax to as much as 20 per cent from the current 10 per cent.

“The authority wished to clarify that there are no current plans to increase the Zakat levels in the private sector,” a statement from the authority said.

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The government body said it had started a public consultation on draft regulations for Islamic tax (Zakat) after making some amendments to the content of the regulation.

“All stakeholders have responded positively and stated their comments which the Authority has received with interest and has expressed its appreciation for their input,” it said, without elaborating.

It also said the authority had made settlements with a number of financial institutions and others regarding their pending Zakat positions.

Source: Gulf Business