(MENAFN) Saudi Arabia aims to impose a special tax on tobacco and sugary drinks on June 10, as part of a series of steps towards closing a budget deficit made by low oil prices.
Accordingly, officials expected to raise between USD2.1bn to USD2.7bn annually from the tax, which will cover a 50 percent levy on soft drinks and 100 percent on tobacco and energy drinks.
Meanwhile, the tax marks a big change in policy for Riyadh, which has kept taxation minimal but recently plans a series of levies and charges by 2020 to close a budget gap at 297bn riyals.
The other nations in the six-nation GCC have also confirmed to execute on tobacco and sugary drinks, and are projected to do so in coming months.
MENAFN2905201700450000ID1095520643
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.