The launch of the customs duty and tax calculator service

The Zakat, Tax and Customs Authority announced the launch of the customs fee and tax calculator service. The authority said, through a tweet on its official account on the social networking site “Twitter”, that the new electronic service allows individual customers, electronically, to know the fees due on their goods imported from outside the Kingdom. The authority indicated that to obtain the service, the link can be used “ ar / eservices / calculator”.

The service includes choosing the type of goods or products (electronic devices, jewelry or precious metals, watches, bags, clothes, electronic games, shoes, personal effects and gifts, tobacco). After entering the product value, the service calculates the customs duties, the customs declaration issuance fee (20 riyals), the 15% value-added tax, to show the total value of the fees. According to the Minister of Finance, Chairman of the Board of Directors of the Zakat, Tax and Customs Authority, Muhammad Al-Jadaan, the decision to merge the General Authority for Zakat and Income and the General Authority of Customs to become the “Zakat, Tax and Customs Authority”, will contribute to strengthening the security aspect, improving business practice, facilitating trade, and facilitating zakat, tax and customs procedures for the business sector. By raising the level of integration of procedures between the two sides and developing a unified platform based on modern technologies, it saves time and cost for the customer, thus enhancing economic competitiveness and attracting foreign investments. And he indicated that the establishment of the Zakat, Tax and Customs Authority is in line with the most prominent modern international practices in the countries of the world, to unify the efforts of the two sectors under one umbrella, which raises the effectiveness of performance and efficiency of spending, in order to achieve the desired goals. The Saudi budget for 2021 estimated revenue from taxes at 257 billion riyals, an increase of 30.8% compared to the expected collection in 2020.

In its report on the 2021 budget, the Ministry of Finance attributed the increase to the financial impact for the whole year from raising the value-added tax rate to 15% and the increase in customs duties for a number of goods, in addition to the expected economic recovery in 2021, and the budget expected that other taxes, including zakat, would be recorded about 18 billion riyals in the year 2021, a decrease of 21.3% compared to what is expected for the year 2020. The ministry explained the decline in income taxes, profits and zakat with the correlation of its revenues collected in 2021 with the economic performance of the year 2020, and affected by the pandemic conditions.

The budget estimated taxes on goods and services at 209 billion riyals in 2021, up 47.7% than expected in 2020, due to the expected recovery of economic activity after the crisis in addition to the full annual impact of the measures implemented during 2020.

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