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Saudi Arabia and the other GCC countries are considering applying the selective tax on new products which are expected to have a level of harm associated with their consumption, Saudi finance minister Mohammed Al-Jadaan told Al Arabiya channel.
“GCC states are planning to impose the tax on sweetened beverages, and they are studying its percentage, timing and related international applications,” Al-Jadaan said on the sidelines of the World Economic Forum in Davos.
The move came after GCC leaders approved to expand the application of the selective tax in their last meeting.
“There are no changes regarding the value-added tax (VAT),” Al-Jaadan added.
“The government’s financial reforms will resume,” he continued, noting that the reforms borne positive results amid great cooperation from the private sector.
Saudi Arabia introduced the selective tax on June 11, 2017, imposing a 100 percent tax on tobacco and energy drinks, and 50 percent on soft drinks.
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