Saudi Shura Council approves selective tax draft law

Saudi Arabia’s Shura Council approved on Sunday a draft law to impose a tax on selective goods and beverages, Sabq newspaper reported.

The 30-article law will later be submitted to the kingdom’s Cabinet for approval.

Saudi Arabia plans to impose selective taxes on tobacco, soft, and energy drinks starting from Q2 2017.

A tax of 100 percent will be levied on tobacco and byproducts, as well as energy beverages, while a 50 percent tax will be applied to soft drinks.

Saudi Arabia and its fellow Gulf Cooperation Council (GCC) members are also planning to levy a 5 percent value added tax (VAT) by January 2018.