Saudi housing minister confirms land tax proposal
A proposal to impose a fee on undeveloped lands has been submitted to the Shura Council, housing minister Majed al-Hogail said
Saudi Arabia's housing minister said the cabinet has submitted a proposal to the Shura Council to impose a fee of no more than $26.67 (SAR100) per square metre on undeveloped lands.
According to Arabian Business, Majed al-Hogail the fees would "encourage landowners to develop their land ... and to provide lands of different and appropriate sizes for different segments of the society".
The Shura Council is expected to complete its study of the proposal within 30 days, Hogail said, did not specify when the new measures would take effect.
Consequently, heightened home building activity is expected in the Kingdom, where land is often held by wealthy individuals or companies who prefer to hold it "as a store of value", or trade it "for speculative profits", the report added.