Riyadh – Mubasher: The Saudi General Authority of Zakat and Tax (GAZT) announced that it will apply a 50% selective tax on sweetened drinks, starting from 1 December 2019.
From the beginning of next month, the tax will be applied in Saudi Arabia as per an agreement among members of the Gulf Cooperation Council (GCC) to introduce the selective tax on unhealthy products that increase the risks of heart disease, obesity, and diabetes.
The tax has already been applied on tobacco, soda and energy drinks.
GAZT has published a detailed description of what constitutes a sweetened drink and other drinks exempted from the tax, such as milk and dairy products.
In May, the authority approved amendments to existing regulations, including a 100% selective tax on tobacco products, a 100% tax on energy drinks, and a 50% tax on soft drinks.
Data by the Saudi Ministry of Health showed that tobacco consumption dropped by 44% across the Kingdom since the special tax was introduced, Governor of the General Authority of Zakat and Tax (GAZT), Suhail Bin Muhammad Abanmi, recently said during the 2019 Zakat and Tax Conference (ZTC), held in Riyadh on 13-14 November.
