A decision to impose a 100 per cent tax on bills at restaurants that serve sheesha has ignited controversy on social media in Saudi Arabia, where smoking sheesha is a popular pastime.
The controversy has also been fueled by confusion over how the tax is applied. In the meantime, some restaurants have stopped offering sheesha, while others have lowered their prices to appease customers. The government’s official gazette said earlier this month that the tax will apply to all tobacco products.
However, the ruling from the Ministry of Rural and Municipal Affairs said it will apply “to the total invoice of the business serving tobacco products”.
A number of restaurants and cafes contacted believed that the tax applies to all table orders in any establishment that serves tobacco products, whether or not the order included sheesha.
The decision sparked an avalanche of criticism on social media networks where the Arabic hashtag “tax on hookah restaurants” is trending in the kingdom.
Many people posted photos of their restaurant bills, with totals of more than double the initial amount when taking into account the new 100 per cent tax and a still-unpopular five per cent value-added tax which went into effect last year. “Tobacco tax-controversy and confusion,” read a headline in the Al-Madina newspaper.