Imposition of 2.5% annual tax on vacant plots from Ramadan 3

JEDDAH: Saudi Arabia said it would impose an annual tax on undeveloped plots of land, following a legislation that was drafted around six months ago.
The Housing Ministry said on its Twitter account the tax would be equivalent to 2.5 percent of the value of the land held by individuals or non-government entities.
Mohammed Al-Modaiham from the ministry said the tax would be applied from Ramadan 3.
For years, owners of undeveloped plots opted to keep it vacant while waiting for land value to rise, or to use the plots for speculative trading, the Wall Street Journal said.
This in turn has caused a lack of affordable housing in the Kingdom’s cities. The tax will also help top up state coffers hit by collapsing oil prices. The tax on unused land was mulled in March last year. Experts say that a levy on unused plots could earn the government up to $13 billion.