(GAZT) General Authority of Zakat & Tax has announced 50% Tax will be levied on Sugary Drinks starting December 1st 2019. The tax is in line with the GCC regulations issued in June 2017 and the retail price will increase by 50% from the current drinks prices in the kingdom.
Sugary Drinks defined by GAZT are any sweetened beverages or any drink which contains sugar and is taken as a drink (liquid form), sweetened liquid or powders converted to drinks or beverages
Per the health reports, GAZT said that Sugary drinks are effecting health and are causing diseases like diabetes and obesity. Studies have been also conducted to replace these with fruit juices or natural fruit pulp with rich minerals & vitamins.
The authority said some drinks would be exempt from the selective tax, including milk-based products (75 percent at least), milk, infant formula, as well as drinks that contain natural sugar, such as fruit juices and those for medical purposes.
Saudi Arabia now already have 100% Tax on cigarette and energy drinks and 50% tax on Sugary & fizzy drinks.
All the details have been provided on the Official website of General Authority of Zakat & Tax gazt.gov.sa
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