Saudi Arabia will become the first Gulf Cooperation Council (GCC) country to impose excise tax at 100 percent on tobacco products and energy drinks, and 50 percent on soft drinks, from June 10.

The news comes days after the UAE Federal Tax Authority (FTA) said it will start imposing excise tax on tobacco products, energy drinks and soft drinks, from the fourth quarter.

The Saudi General Authority of Zakat and Tax, the entity responsible for collecting value added tax (VAT) and excise tax, announced the decision on Saturday following ratification of the tax treaties by the General Secretariat of GCC on May 23, according to local media reports.

Al Eqtesadiyah, an Arabic business daily, quoted Zakat Authority officials as saying that the excise tax revenues will reach $1.87 billion (SR7bn) in mere six months… see more

source: arabianbusiness