Selective Tax in the Saudi System: An Analytical and Foundational Study in Light of Islamic Jurisprudence

Abstract

This research examines "Excise Tax in the Saudi System: An Analytical and Foundational Study in Light of Islamic Jurisprudence."It aims to clarify the nature of this tax, which is one of the latest fiscal tools adopted by the Kingdom of Saudi Arabia in alignment with Vision 2030 and the Unified GCC Agreement. The research problem lies in the urgent need to provide an integrated foundational framework for excise tax, both legally and jurisprudentially, moving beyond mere procedural descriptions to analyzing its functional objectives and its compatibility with the maqasid (objectives) of Sharia, especially regarding contemporary health and environmental challenges resulting from the consumption of harmful goods. The study adopts a descriptive-analytical approach to review the legal texts within the Saudi Excise Tax Law and its executive regulations. It also employs a foundational approach to link these provisions with the rules of Islamic jurisprudence and its primary sources, alongside a comparative approach to highlight the distinctions between excise tax and other taxes, such as Value Added Tax (VAT). The research is structured into four main chapters covering the concept of the tax, its procedural provisions, its functional nature, and its precise jurisprudential grounding. The research concludes with several key findings, most notably that the excise tax in the Saudi system finds a solid foundation in Islamic jurisprudence through the principles of Maslahah Mursalah (public interest), the authority of the ruler in fiscal policy, and the principle of indirect financial Ta'zir (discretionary punishment) on harmful goods. Furthermore, the study demonstrates that this tax transcends traditional fiscal goals, playing a vital role in protecting public health and the environment by guiding consumer behavior and reducing demand for goods with negative externalities. The results also confirm the efficiency of the Saudi oversight system, represented by the digital stamping system, in mitigating tax evasion and ensuring fairness. The study recommends enhancing social awareness of the Sharia and national dimensions of this tax and directing its revenues toward supporting preventive health and environmental programs.