Saudi Arabia to implement ‘sin tax’ from June 10
DUBAI: Saudi Arabia is set to start taxing cigarettes, energy drinks and carbonated drinks from second week of June, reported the Saudi media.
According to Saudi Gazette, the move will make KSA the first country in the Gulf Co-operation Council to fix the implementation date.
On May 23, the decision was taken by the General Secretariat of Gulf Co-operation Council to impose 100 per cent tax on cigarettes, and energy drinks, and 50 per cent on carbonated drinks.
The Zakat Authority is responsible for collecting VAT and ST, ensuring that all taxpayers comply with relevant laws and that no one evades taxes. It applies international standards for tax collection and uses state-of-the-art technology to ensure precision and accuracy, the Saudi Gazette said.
If registered people (traders, importers etc.) fail to present a tax declaration to the General Authority of Zakat and Tax, then they will be penalized by a fine ranging between 5 per cent and 25 per cent of the tax value, the state-run agency said.