Tuesday, May 30, 2017
100% TAX ON TOBACCO PRODUCTS & ENERGY DRINKS FROM JUNE 10 IN SAUDI ARABIA
Starting from June 10th of 2017, Saudi Arabia is the first one in GCC States for going to implement a selective tax (100 percent tax on cigarettes, tobacco products, energy drinks and 50 percent tax on carbonated drinks or soft drinks) as per the decision of General Secretariat of Gulf Cooperation Council. Trending : Truth behind Zakir Naik Saudi Citizenship
The General Authority of Zakat and Tax will be responsible to collect the selective tax and Value Added Tax (VAT), 5 percent of VAT tax is going to implement in Saudi Arabia without any change in current prices from 1st Jan of 2018 along with GCC states. Related : Remittance tax proposal rejected
- Importers and Traders who fails to submit a tax declaration to Zakat and Tax Authority will be penalized with 5 to 25 percent of the tax value. Violators who violate the regulations, refuse information and prevent zakat Authorities from their duties will be penalized with 50,000 Saudi Riyals. Similar : Saudi Law on Selective Tax
- As per the registrations there are 630 companies in Saudi Arabia who are applicable for selective tax in which 350 are big companies and 280 are small importers. The Zakat Authority applies international standards for collecting tax and to ensure the precision and accuracy. Recommend : VAT tax from Jan 1st 2018
- The selective tax will get a revenues of 15 billion Saudi Riyals annually in Saudi Arabia as per the various news channels, Tax payers are require to file tax returns every two months and pay with in 15 days from the submission date. See also : New fee on companies and expats
