Saudi Arabia: White lands tax passes at last

A 13 June cabinet meeting, chaired by King Salman, finally approved the Undeveloped Land Fees Regulation, a tax on undeveloped urban land, popularly known as ‘white land’. The 2.5% tax on the value of undeveloped land designated for residential or commercial use will be applied in stages to owners of plots bigger than 5,000m2. The Ministry of Housing will collect the levy and fine owners who don’t pay the tax. The long-awaited tax, intended to ease the severe shortage of housing by encouraging landowners to develop their assets, has been expected for some weeks.