Details of State Revenue Law

The Official Gazette published the State Revenue Law, which was recently approved by the Cabinet. The law will come into force 180 days after the date of its publication.

According to Article 2, revenues—defined under the law as cash collected by the state—consist of fees and taxes, financial consideration, sales, penalties and fines, sale and leasing of state properties, compensation, and financial returns generated from contracts, natural resources, privatization, or investment. This is in addition to any other source approved by a Royal Order, Royal Decree, or Cabinet’ resolution.

Under Article 3, except for oil revenues, which shall be coordinated with the Ministry of Energy, the Ministry of Finance shall estimate revenues for a period of up to 10 fiscal years based on estimates and data provided by government entities, including any debt data available from such entities. The ministry may discuss and revise entities’ estimates and notify them of the approved estimates.

Article 13 stipulates that the state’s debt has priority and does not become unenforceable through the statute of limitations.

The new law replaces the State Revenue Law issued under Royal Decree No. M/68 dated Oct. 26, 2010, and repeals any provisions that conflict with it.