Saudi Arabia to impose 50% selective tax on sugary drinks

Saudi Arabia will impose a 50 percent selective tax on sweetened drinks, the General Authority for Zakat and Tax (GAZT) said.

Soft and energy drinks are subject to 50 percent and 100 percent tax, respectively.

Untaxable sweetened drinks include fruit and vegetable juices that do not contain added sugar, dairy products that contain 75 percent of milk or soy, and medical nutrients and concentrations.

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

Saudi Arabia decided to impose a selective tax on soft drinks as of Dec. 1, 2019, Argaam reported.