Saudi Arabia

50% Selective Tax on Sugary Drinks From Today

Saudi Arabia to impose 50% selective tax on sweetened beverages starting today.

According to the General Authority of Zakat and Tax (GZAT), 50% selective tax is applicable to any product added to sugar sources or other sweeteners that are produced in the form of ready to use drinks, concentrate, powder, gel, extracts or in any other form that can be converted into a drink. 

At the same time, selective tax is applied to sweetened beverages containing milk at a rate not less than 75 percent of the content of the ready-to-use drink, as well as milk and milk formulas, in addition to natural fruit drinks without additives.

As per GZAT, 100% tax to impose on energy beverages and tobacco and its byproducts such as electronic smoking tools and their liquids.