Saudi: A selective tax levied on sugary drinks will come into force on December 1, in Saudi Arabia.
The General Authority of Zakat and Tax (GAZT) announced that a 50 per cent “sin tax” will be imposed on these products, in line with GCC resolution to expand levies on beverage deemed harmful to health.
Amendments related to selective tax regulations have already been approved to include sugary drinks, as well as electronic smoking devices and their liquid substances.
Thus, a selective tax of 100 per cent will be imposed on tobacco and its byproducts, electronic smoking tools and their liquids, as well as energy beverages, while a 50 per cent tax will be applied to soft drinks and sweetened drinks.
The GCC had earlier decided to impose a selective tax on soft carbonated drinks and energy drinks and later to include sweetened beverages that are harmful to health under the unified GCC selective tax agreement.
The tax system for these beverages will be 50 per cent of the retail price for the final consumer beginning from December 1, which will be applied by the GCC countries.