Riyadh: General Authority of Zakat and Tax announced selective tax will come into effect on 10 June and the value added tax on 1 January.
The announcement comes after a decision taken by the General Secretariat of Gulf Cooperation Council (GCC) on 23 May.
The move will see 100 per cent tax levied on tobacco products and 50 per cent on soft drinks.
If registered traders or importers fail to present a tax declaration to the General Authority of Zakat and Tax, then they will be penalised by a fine ranging between 5% and 25% of the tax value.
Violators or those who obstruct Zakat Authority’s employees from carrying out their duties will be fined up to SR50,000.
If importers and producers of commodities liable to selective tax don’t register the required information with the Authority, they will be considered as tax evaders.