Saudi Arabia will be collecting a new tax from expatriates and their dependents starting July 1, Gulf News reported on Sunday. 

The fee will be paid annually when a residence visa is sent for renewal or when a new visa is being issued. 

It will go straight to the state treasury and is said to begin at a monthly SAR100 ($26) for each individual. The amount is expected to increase gradually every year until 2020.

While private sector companies already pay a SAR 200 ($53) monthly tax for each foreign employee they hire, this amount is expected to double to SAR 400 a month starting January 2018.

Previously, the kingdom waived this specific fee for companies who hired more Saudi nationals than foreigners. 

However, under the new tax laws the fee will no longer be waived, but rather imposed at a discounted rate.

The expat tax will come into effect a few weeks after the "sin tax" was imposed on June 10. 

The tax sets a 100 percent excise tax on tobacco products and energy drinks, in addition to a fifty percent tax on soft drinks. 

According to the country's Zakat Authority officials, its revenues are expected to reach between 8 to 10 billion Saudi Riyals ($2.1 - $2.7 billion) within six months.

Changes in tax policies in the kingdom this year come amid a plan to boost and strengthen its economy under the National Transformation Program 2020 and Vision 2030