Dec 29, 2016


Saudi Arabia is on the way to implement 100 percent excise tax or sin tax on tobacco and its related products, It is expected to be imposed in the second quarter of the year 2017 in the Kingdom, Value Added Tax(VAT) on other products will be on time in similar with GCC states starting from first quarter of 2018. Recommend : VAT tax on GCC from 2018

Fifty percent(50%) of VAT tax on soft drinks, Hundred percent(100%) of VAT tax on tobacco, related products and on energy drinks starting from the second quarter of the year 2017 as per the report of Fiscal Balance Program 2020. As per the statement of health minister its already passed the law. Related : Saudi Airport Building Charges on tickets

- The Kingdom's government 2020 program report revealed that Saudi Arabia was working on plans to include tax on "sugary snacks and drinks". As the country want to fight with diabetes and obesity in its population especially in the children. Trending : No religious festivals in Saudi Arabia

- Excise tax or Sin tax is a tax on harmful products that effects health on using it. Tobacco, Soft drinks, Fast food, Alcohol, Gambling all comes under Sin tax or excise tax. Similar : New tax on expats and companies from july 2017

- Implementing a 100% tax on tobacco and related products will bring down the smokers in the Kingdom of Saudi Arabia. Cigarette costs in the Saudi Arabia and other gulf countries are less compared to the international level.

- Saudi Arabia wants to combat smoking as it is one in the top list of smokers, It has 14 percent of teenage smokers and 7% of women smokers as per the report of World Health Organization, Adding 100% vat on it will surely bring down the numbers specially in teenagers below 18. See Also : No Tax on expatriates remittance


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