Saudi says no current plans to raise Islamic tax for private sector

Saudi Arabia has no current plans to increase Islamic tax levels in the private sector, the General Authority of Zakat and Tax said on Friday, after a Bloomberg report which said the kingdom was mulling plans to increase it.

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.

It 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.