Saudi Arabia applies 50% tax on sweetened beverages from today

The Saudi General Authority of Zakat and Tax (GAZT) will start implementing from today, Dec. 1, a 50% selective tax on sweetened beverages.

GAZT said sweetened beverages include any product with sugar sources or other sweeteners, which are produced in the form of ready-to-use drink, concentrate, powders, gel, extracts or in any other form that can be converted into a drink.

Other untaxable beverages include:

- Soft carbonate and energy drinks, which are subject to a selective tax of 50% and 100%, respectively.

- Natural fruit drinks without additives (100% tax).

- Sweetened beverages containing milk at a rate not less than 75% of the content of the ready-to-use drink, milk and milk formulas. GCC states implemented selective tax on tobacco and energy drinks at various dates while the tax came into being in the Kingdom from 11 June 2017.

- Nutritional and medical concentrates.

- Milk-based drinks including animal and powder milks, and milk substitutes, which contain 120 milligrams of calcium per 100 milligram.

GAZT board of directors approved on May 15 to amend the selective tax regulations to include sweetened drinks, as well as electronic smoking devices and their liquids, Argaam reported earlier.