The prices of tobacco products, energy drinks and carbonated drinks will increase next year once the Value Added Tax (VAT) takes effect on January 1.
The three products which are deemed unhealthy will be subjected to VAT and selective tax, according to Sabq newspaper.
The Saudi authorities clarified the issue on the official VAT account which was launched to answer consumers’ queries and update the public.
A five per cent tax will be levied on prices of tobacco products and energy drinks once the VAT scheme becomes effective.
The prices of energy drinks and tobacco products increased by 100pc when selective tax took effect last June.
The prices of carbonated drinks also increased by 50pc.