State revenue incentives and private sector involvement
The new "State Revenues" system in Saudi Arabia aims to modernize and establish principles of transparency and efficiency in the management of government revenues. It defines the sources of these revenues, including taxes, fees, sales, compensations, and returns, along with a plan to estimate revenues for up to 10 years. The system assigns the Ministry of Finance a key role in managing and estimating revenues and requires government entities to develop their asset revenues and oversee their collection, while providing incentives to increase revenues. It obligates authorities to transfer all revenues and debts to the central treasury and grants the Ministry of Finance broad supervisory powers, including debt collection and intervention in case of disputes. Additionally, it includes mandatory procedures for debt collection, such as demanding payment from debtors on the next working day and pursuing legal action if not paid within 30 days, with a provision stating that state debts do not expire by statute of limitations. The system also establishes committees to study requests for exemption or debt installment plans, allowing debts to be paid in installments over up to 25 years under specific conditions and controls. It emphasizes the importance of reporting violations to the relevant authorities within 30 days. The goal of the system is to improve financial efficiency and governance, replacing the previous State Revenues regulation, and it is set to take effect 180 days after its issuance.
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