?JEDDAH — The Cabinet decision to impose tax on vacant land plots, locally known as “white lands,” has won plaudits from several sections of the society.?
?The Cabinet, at its regular meeting on Monday, accepted the recommendation of the Council for Economic and Development Affairs (CEDA) and decided to impose the tax on vacant lands in urban areas in all cities.?
?The Cabinet also tasked the CEDA to prepare a mechanism to implement and organize the system. The CEDA will submit its proposals to the Council of Ministers which will then send it to the Shoura Council for approval.?
?Essam Al-Zamil, an economic columnist, who has been actively tweeting on the issue of “white lands” and their reflection on increased real estate prices said Monday that he believes that the Cabinet decision must be a happy news for all Saudis as their dream of owning a house could now be realized.?
?“Some people were of the view that imposing tax on such land plots was impossible. In life, there is nothing like impossible!” he said. “The devastating impact of these vacant plots of land was not only felt on the real estate sector but it had negatively affected the whole economy,” Al-Zamil said.?
?He congratulated “every citizen who is struggling to own his house,” and described the decision as “one of the major economic decisions in the history of Saudi Arabia.”?
?Meanwhile, real estate investors believe that the decision will reflect on the market and will result in drop of real estate prices.?
?Iyad Bafaqih, a member of the real estate committee at the Madinah Chamber of Commence and Industry, said that traders might sell their plots of land to escape the tax. This, he noted, will result in increase in the supply and reduction of prices.?
However, he noted some other traders will reserve their plots and will pay the tax by increasing the already exaggerated prices. He added that the decision will reduce monopoly in the market and will change the previous belief that “lands do not eat or drink!”
