JLL exec: 'Saudi 2.5% land tax law one year away'
Jamil Ghaznawi, head of JLL KSA, told Construction Week that Saudi's law on taxing white land will require a year to take effect
Saudi Arabia's recently-approved tax on white land in the country will require at least a year before it takes effect, a JLL executive told Construction Week.
Jamil Ghaznawi, national director and country head of JLL Saudi Arabia, said the physical size of the Kingdom will also be a challenge whilst implementing the law.
“It’ll likely be over a year before the law goes into effect because numerous steps have to be accomplished first,” Ghaznawi said.
“Things can’t happen overnight when applying such a law across a vast expanse that is the Kingdom.”
Ghaznawi said a land registry needs to be created, proper land valuations need to be derivedt, and systems and methodologies need to be arrived at for the law to smoothly take effect.
“The implementation needs to consider all the stakeholders involved to support the tax collection process, the enforcement of the law and the development processes that ensue,” explained Ghaznawi.
Saudi Arabia approved proposals for a 2.5% ‘white land tax’ on 30 November.
The tax will apply to undeveloped residential and residential/commercial plots within urban boundaries.
The law will come into force six months after the Ministry of Housing’s release of detailed regulations, the publication of which will take place within the next six months.
Construction Week will publish the full interview with Jamil Ghaznawi on Saturday, 5 December, 2015.