Saudi Arabia is expanding the excise tax charged on tobacco and soda to include electronic cigarettes and all drinks with added sugar as part of its efforts to boost non-oil revenue.
According to a document issued by the General Authority of Zakat and Tax, all sweetened drinks will be subject to a 50% excise tax. E-cigarettes and their liquids will have a 100% tax.
However, the date of implementation has not yet been announced.
Saudi Arabia began imposing excise taxes in 2017, applying a 50% levy on soda and 100% on energy drinks and tobacco. Separately, the government introduced a 5% value-added tax in January 2018.
The world’s largest crude exporter has introduced several new taxes and fees over the past few years as part of an economic transformation plan.