SAUDI EXPATRIATES

In an interview with Al-Arabiya, he explained that this issue was one of the biggest concerns for industrial companies in the past, but it has now been fully resolved.

Alkhorayef said the discussion about the sugar tax was a positive example of cooperation between several government bodies, including the Ministry of Finance, the Zakat, Tax and Customs Authority, and the Ministry of Health. Most Viewed: Saudization of 12 jobs in private sector

He stressed that the goal of the new sugar tax policy is to protect public health, reduce sugar consumption, and at the same time allow manufacturers to innovate and create new products.

The changes to the tax policy were made after all the involved parties reached a comprehensive agreement. He also pointed out that the complexity of the issue stemmed from the need for coordination at the Gulf Cooperation Council (GCC) level.

Alkhorayef explained that the industrial sector in Saudi Arabia—just like industries around the world—faces ongoing challenges due to constant changes and global crises. He said, “I was an industrialist myself, and I know that the sector’s problems never end. But the Kingdom has shown strong commitment to working with the private sector to solve these challenges over the past years.”

Last month, the GCC Financial and Economic Cooperation Committee approved a decision to change how the selective tax on sweetened drinks is calculated. The new system uses a tiered volumetric approach, which means the tax will depend on the amount of sugar per 100 milliliters of the ready-to-drink beverage. Drinks with more sugar will fall into higher bands and receive higher tax rates. This replaces the old flat 50% tax on the retail price of sweetened drinks. Recommend: New reforms for expat workers

Sweetened beverages include any drink that contains added sugar, artificial sweeteners, or other sweetening substances. This new system covers ready-to-drink beverages, concentrates, powders, gels, extracts, and any product that can be turned into a beverage.

The purpose of the sugar tax is to reduce consumption of sugary drinks and improve public health across Saudi Arabia and the GCC. The new tiered system encourages companies to lower the sugar content in their products and helps consumers make healthier choices. It also aims to fight health problems linked to high sugar intake, such as obesity, diabetes, and dental issues.