ZATCA says business sector compliance with excise tax hits 93%

Logo of Zakat, Tax and Customs Authority

The Zakat, Tax and Customs Authority (ZATCA) said that the compliance rate of business sector subject to selective goods tax rose to 93%.

The number of domestic producers of goods, to whom the selective tax is applied, reached 48, Al-Eqtisadiah cited the authority as saying, indicating that part of them had been penalized for non-compliance.

The authority explained that it is committed to applying the provisions of tax regulations, including penalties for violations of tax provisions.

The Kingdom began implementing the selective goods tax on June 11, 2017, at 100% on tobacco products and energy drinks, and 50% on soft drinks, according to data compiled by Argaam.

In May 2019, the authority’s board approved an amendment to the executive regulations of the selective tax law, to include sweetened beverages, electronic smoking tools and liquids used in them.