On May 15, 2019, the General Authority of Zakat and Tax (the national tax authority) announced that e-cigarettes and the products used therein (e.g. tobacco) would be subject to 100% tax. Beverages containing sugar are now taxed at 50%. Both excise duties have been in force since 25 May 2019.
The two new taxes represent a continuation of the tax policy that has been pursued by largest economy in the Arab world since 2017. Already back then, Saudi Arabia introduced a 100% tax on cigarettes and tobacco products, a 100% tax on energy drinks and a 50% tax on carbonated drinks.
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