No Longer Tax-Free: Saudi Arabia will soon tax all domestic flights

Revenues generated from the tax will go towards funding "airport infrastructure development projects and enhancing airport services."

The past couple of years have been historic for Saudi Arabia, a country once perceived as ultra-conservative and too prudent to allow just anyone in. But dips in oil revenues and financial difficulties across the globe have taken a toll on the wary kingdom known for its petrol-reliant economy. 

In a bid to fill gaps, the country has been working on diversifying its economy under an ambitious blueprint known as Vision 2030, presented by Crown Prince Mohammed bin Salman in 2016. A section in this rehabilitation plan involves the unrolling of several taxes, which the kingdom was free of up until MBS' plan was set.

Several taxes have been imposed on residents of the country in recent years, with the latest currently being an excise on domestic flights. Dubbed the "Airport Building Tax," the levy was announced by the General Authority of Civil Aviation (GACA) over the weekend and is set to be imposed in January. 

Riyadh Airport Source: Wikimedia

Revenues generated from the tax will go towards funding "airport infrastructure development projects and enhancing airport services."

The extra charge to be paid amounts to 21 Saudi riyals ($5.60) for a one-way ticket — divided into 10 Saudi riyals for departure airport, 10 Saudi riyals for arrival airport, and 1 Saudi riyal value-added tax. As for round trips, charges will double. 

People who book domestic air carriers at local international departure terminals will be expected to pay a total of 87 Saudi riyals ($23), according to Arab News. 

Who's exempted from the soon-to-be implemented tax?

Those exempt from the excise include:

  • Infants
  • Passengers staying on board during transits and thus not using airport facilities
  • Members of crew on duty
  • Members of aircraft registered on the list of airline pilots who have IDs

As to whether the charge is set to increase over time as with other similar taxes in Saudi Arabia, a kingdom once known as a tax-free haven, the amount will be "subject to decrease or increase every three years."

Saudi Arabia is no longer tax-free

Imposing taxes is set to contribute billions to the kingdom's economy over the next few years. 

In June 2017, Saudi Arabia became the first Gulf Cooperation Council (GCC) country to impose a 100-percent "sin tax" on tobacco products and energy drinks, in addition to a 50-percent excise on soft drinks. An expansion of the "sin tax" stretched out to cover e-cigarettes and sweetened drinks back in May, while October witnessed a levy on restaurants and cafes serving tobacco. 

Two years ago, the country launched its first-ever expat tax, affecting expatriates and their dependents. The monthly $26 fee - an amount expected to increase gradually every year until 2020 - is paid when a residence visa is sent for renewal or when a new visa is being issued. 

In 2018, the kingdom's Shura Council approved the addition of VAT in supermarkets and stores, which has since gone into effect, and another bill that forces private companies to pay a fee for every foreign worker employed. 

Fake news in full force amid Lebanese revolution, but its effect is dwindling

From WhatsApp voice notes to news articles, there is no shortage of misinformation.
Source: Needpix.com

If you are Lebanese, live in Lebanon, or simply follow Lebanese politics then your phone has probably been bustling with all sorts of notifications for the past two weeks.

You open WhatsApp to listen to a forwarded three-minute-long voice note in which a random person enlightens you with alleged updates on the ongoing revolution. You move onto Facebook to find your timeline flooded with posts citing so-called "credible sources," coupled with footage that eventually turns out to be from a whole different time and place. Seeking credibility, you check media outlets only to realize that some of them are also complicit in the deed, having thrown media ethics out the window to further their affiliates' political agendas. Thankfully, you have some *woke* people on Twitter who are spreading awareness and battling fake news tooth and nail.

Fake news amidst a sensitive political scene is no joke; political factions have been resorting to misinformation to influence public opinion, demonize revolutionaries, and find ways to exploit the circumstances to their advantage. 

From claims of a nationwide internet shutdown, to ones alleging the Army’s General Directorate had decided to announce a state of emergency, and of course, the endless talk about the value of the Lebanese pound and the status of the Lebanese economy, there is no bound to the list of fake news pieces that have been shared lately. 

Fake news made it all the way to CNN's Arabic website, which published an alleged resignation letter credited to former Minister of Interior Raya Hassan during the first days of the revolution. The letter turned out to be false.

False or inaccurate information, whether shared on purpose or out of mere gullibility, has already taken a toll on the uprising and served the ruling class' attempts to spread fear and paranoia among the public.

According to the International Fact-Checking Network (IFCN), Lebanon has witnessed misinformation and fake news long before the current uprising. IFCN emphasizes the need to "develop a fact-checking ecosystem" in the country and the region in general. The network notes that the problem "could be the lack of public data and the risks related to pushing the limits of freedom of speech in the region."

The repercussions of misinformation, on one hand, and silence of official sources, on the other, were prevalent when locals spread rumors about a drop in the value of the Lebanese pound over the past two months. Many locals rushed to withdraw their bank deposits in U.S. dollars, spreading panic among bankers, companies, and citizens.  

"While people were madly hitting their savings accounts, the Lebanese Central Bank remained silent, allowing for plenty of room to rumors and hoaxes," according to Roula Mikhael, executive director of the Maharat Foundation, a Beirut-based NGO working on media development and freedom of expression.

Thankfully, people in Lebanon have become increasingly aware of the prevalence of fake news, and they have been shedding light on the alarming phenomenon: 

People are struggling to tell truth from lies

Yet many social media users are spreading awareness on the matter

And setting the records straight

A real "epidemic"

"Pathetic"

"Please don't add oil to the fire"

Please take note:

Media blackout is just as harmful as fake news