Saudi Budget 2025: Government Expects Taxes to Increase by 3.6%

The Saudi Ministry of Finance revealed that tax revenues in 2025 are expected to reach about 379 billion riyals, an increase of 3.6%, compared to estimates for 2024, as a result of economic growth, continued improvement in non-oil activities, and the positive impact of ongoing development in tax administration.

It added that tax revenues on income, profits, and capital gains are expected to reach 31 billion riyals in 2025, an increase of 2% compared to what is expected to be collected in 2024. This is due to the extension of the initiative to cancel fines and exempt from financial penalties that ends at the end of 2024, which contributed to motivating taxpayers to pay in previous periods.

According to the statement, taxes on goods and services are expected to achieve about 290 billion riyals in 2025. An increase of 3.8% compared to what is expected in 2024, due to positive expectations for non-oil activities and private consumption, in addition to the improvement in tax revenue collection.

Taxes on international trade and transactions are expected to achieve about 23 billion riyals in 2025, an increase of 2.4% compared to what is expected by the end of 2024, driven by the expectation of continued growth in imports next year in conjunction with the improvement in domestic consumption indicators.

It is also estimated that other taxes (including: Zakat) will record about 36 billion riyals in 2025, an increase of 3.9% compared to what is expected for 2024, reflecting the expected economic growth during 2024 and the improvement in the performance of economic sectors.

The Saudi Ministry of Finance announced the estimated budget for the year 2025, which showed that revenues are 1,184 billion, expenditures are 1,285 billion, and the deficit is 101 billion riyals.

In contrast, actual revenues for the year 2024 amounted to 1,230 billion riyals, expenditures amounted to 1,345 billion riyals, and the deficit amounted to 115 billion riyals.