News

Saudi Arabia New taxes on beverages containing sugar and e-cigarettes

Saudi Arabia has introduced new special taxes on beverages containing sugar and e-cigarettes. Similar excise duties on beverages and tobacco have existed since 2017.

Since 25 May 2019, beverages containing sugar have been taxed at 50% in Saudi Arabia.
Since 25 May 2019, beverages containing sugar have been taxed at 50% in Saudi Arabia.

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.

Do you have questions about Saudi Arabia?

Kontaktieren Sie Ruedi Büchi, unseren Senior Berater für Saudi-Arabien oder nehmen Sie an einer unverbindlichen individuellen Länderberatung teil Jetzt für eine kostenlose Länderberatung anmelden

Links

Recommend us
How should we contact you?

Premium Partner

Strategic partners

Institutional partner

Official program