Saudi Arabia’s Cabinet has approved an updated state revenue system, marking a significant step toward modernizing the Kingdom’s public financial system and reinforcing the principles of transparency, compliance, and governance in line with the country’s rapidly evolving economy. Following the decision that was made during the Cabinet’s session held on Tuesday in Jeddah, Finance Minister Mohammed Al-Jadaan expressed his gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and Crown Prince and Prime Minister Mohammed bin Salman. Al-Jadaan said the new move represents a key pillar in strengthening the governance of government revenues and improving their management, thereby supporting fiscal sustainability over the medium and long term. He noted that the new system will enable government entities to improve their revenue estimation mechanisms and raise compliance levels in settling dues. It also establishes a comprehensive framework for collection procedures and the management of government debt, ensuring an optimal balance between efficient revenue collection and due consideration of taxpayers’ financial circumstances. The system is part of the Kingdom’s ongoing review of its financial legislation to ensure alignment with the objectives of Vision 2030. It is designed to: • Clarify roles and responsibilities: Establish clear frameworks for coordination and delineate responsibilities among government entities involved in public finance. • Strengthen financial planning: Improve medium- and long-term revenue forecasting and estimation, enhancing the reliability of budget projections and fiscal planning. • Promote fiscal discipline and payment flexibility: Establish clear procedures for collecting, rescheduling, and allowing installment payments of government receivables under specified regulations, making it easier for taxpayers to meet their obligations while improving the state’s management of financial resources.
