Posted by : Aahil Shaik Tuesday, November 26, 2019

Saudi Arabia started collecting 50% Selective Tax on Sugary drinks

Starting from 1st December 2019, Saudi Arabia to collect 50% selective tax on all sugary drinks as per the statement of General Authority of Zakat and Tax, According to the Saudi Press Agency the tax on all sugary drinks is in line with the Gulf Cooperation Council(GCC) unified agreement. Trending : Cancelling final exit visa to cost 1000 SR in KSA




Before this, Saudi Arabia was implemented selective tax on soft drinks and energy drinks. The Kingdom already had a tax of 100% on cigarettes, tobacco products and energy drinks and 50% on fizzy and soft drinks.

- The General Authority of Zakat Tax (GAZT) revealed that health reports have warned against the bad results of consuming sweetened drinks, It said such type of drinks may cause diseases like diabetes and excessive obesity.




- While the consumer can subtitute sugary drinks with fruits and fresh juices which are rich in vitamins that are benfecial to the body.

- However, The selective tax would not be imposed on sugary drinks that contains 75% milk, in addition to drinks that not contains added sugar but are naturally sweet, like fresh fruit jucie and drinks for special medical purposes.

- From January 2018, Saudi Arabia started collecting VAT of 5% to improve its non oil revenue after generation after a plunge in oil prices from it revenues.



50% Selective Tax on Sugary drinks in Saudi Arabia from 1st December

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