Sugar Sweetened Beverage – Excise update

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Saudi’s General Authority for Zakat and Tax (Gazt) said it approved amendments to existing regulations on May 15, 2019. According to the guidance published in the official gazette, a 100 per cent tax will be enforced on e-cigarettes and its accompanying tools, and a 50 per cent tax on soft and sugary drinks.

The UAE imposed excise duty on certain items at the end of 2017 and is now considering the inclusion of more products on its excise tax list, according to a statement by the Ministry of Finance in April 2019.

Considering the probability of implementation of Excise on Sugar Sweetened Beverages, entities involved in the manufacturing, distribution and selling of these products should evaluate the impact of potential excise levy on their business model and operations.