Saudi Arabia to launch selective tax in 15 days

Saudi Arabia’s cabinet approved implementing the selective tax within 15 days after it was published in the official gazette on Friday.

The cabinet has given a 30-day grace period to those entities that will be covered by the tax to adapt the rules and regulations.

The Saudi cabinet agreed in February to implement the unified selective tax agreement that was previously approved by the six member states of the Gulf Cooperation Council (GCC).

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.