Tobacco off shelves in Saudi Arabia amid price hike rumors

Shops in many Saudi cities, including Riyadh and Jeddah, were without cigarettes on Sunday amid speculations of a government price hike on tobacco and other unhealthy products, Reuters reported.

At least one shop in Dammam was selling Philip Morris cigarettes for SAR 15 a pack, instead of the previous SAR 10, it added.

The finance ministry’s 2016 budget stated that it would raise fees on harmful goods, such as tobacco and soft drinks, as it looks to increase non-oil revenue and reduce the state-subsidized healthcare bill.

An executive at a tobacco distribution company told Reuters that Saudi Customs had doubled its import duty for a shipment that he tried to bring into the country on Sunday.

Meanwhile, Saudi-based Sabq news website quoted the kingdom’s customs authority on Saturday as saying that tobacco prices had doubled; however, there was no notice any government website.