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50% tax on sweetened unhealthy beverages from Dec 1

The General Authority for Zakat and Income Tax clarified that it will start implementing the decision of the Gulf Cooperation Council to expand the selective tax on beverages harmful to health, which previously included soft drinks and energy drinks, to include sweetened beverages that are harmful to health under the unified GCC selective tax agreement The tax system for these beverages will be 50% of the retail price of the final consumer beginning on the 1st of December 2019, which will be applied by the GCC countries. Q GCC respectively.

Sweeteners are any product added to a source of sugar or other sweeteners produced for drink, whether it is ready for drinking, concentrated liquids, powders, gel, extracts or any image that can be converted into a drink.

She pointed out that the health reports pointed to the negative results of the consumption of the individual local drink, stressing that the consumer is exposed to a number of diseases and weight gain, and the consumer can replace canned drinks and sweetened with fruits and natural juices rich in vitamins useful to the body.

The Zakat and Income Tax Authority confirmed that the selective tax will not be applied to sweetened beverages containing milk at a rate not less than 75% of the content of the ready-to-use drink, milk and milk formulas, as well as beverages containing sugar, not added by nature, Medical Special.

It is noteworthy that the General Authority for Zakat and Income allocated a page on its website GAZT.GOV.SA to simplify the concept of sweetened drinks through illustrations, as well as illustrations of the drinks that will not be subject to selective tax based on the unified agreement for selective taxation of the Gulf Cooperation Council countries and the tax system Selectivity and its executive regulation

Find More at Filed Under: Saudi Laws

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