Saudi Arabia Increases Excise Taxes on E-Cigarettes, Sweetened Drinks
Saudi Arabia announced new excise taxes on e-cigarettes and sweetened drinks, according to a May 28 report from the Hong Kong Trade Development Council. Under an amendment to the Excise Tax Agreement of the States of the Gulf Cooperation Council, e-cigarettes and tools will be taxed at 100 percent and sweetened beverages will be taxed at 50 percent, the report said. The changes took effect May 18.
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The report also said, in addition to “newly excisable goods imported or produced on or after the effective date, any excisable stock held under customs or excise tax suspension or by a government entity at the effective date will also be subjected to excise tax” if the retail value of the “excisable stock” is more than $16,000 (U.S. dollars). Businesses are required to determine the value of the excise tax they must pay and file a declaration within 45 days of the effective date, the report said. The changes also require excisable goods to have “paper tax stamps and digital codes” to confirm that taxes have been paid.