Saudi Arabia introduces 'sin tax' from today

[SouI]

http://arabianbusiness.com/saudi-arabia-introduces-sin-tax-from-today-677317.html



Saudi Arabia introduces 'sin tax' from today
By Parag Deulgaonkar

• Sunday, 11 June 2017 9:34 AM

Saudi Arabia has implemented 100 percent excise tax on tobacco products and energy drinks, and 50 percent tax on soft drinks from today (Sunday).

Last month, the kingdom announced imposing excise tax from June 11, after the Gulf Cooperation Council unified value-added tax (VAT) and excise tax treaties were ratified in May 2017.

The UAE is set to introduce the excise tax from the fourth quarter.

Price of a 250ml can of “Code Red” energy drink increased to SR4 from SR2, while Red Bull is being priced between SR10 and SR12, Saudi Gazette quoted industry sources, as saying.

Without naming any soft drink manufacturer, the daily said a global soft drink maker reduced its can size to 330ml from 355ml as it introduced a 50 percent price hike.

Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months.

While in March, UAE Federal National Council, Minister of State for Financial Affairs Obaid Al Tayer said tax on tobacco is expected to bring in $545 million (AED2 billion) in annual revenues, he gave no revenue estimate from the soft drinks segment.


In April, Adrienne D’Rose, senior manager, Deloitte, who attended the Ministry of Finance briefing on excise tax, told Arabian Business that the excise tax will be payable monthly by registered businesses, on the 15th day of the following month and companies that resort to “stockpiling” will face penalties.

Brian Conn, partner, tax advisory services, BDO, told this website earlier that the issue of increasing price or absorbing VAT/excise tax will be a major concern for companies selling small value items.

Arabian Business has approached a number of global energy and soft drink manufacturers for comments.

Days are counted.

 

[HAIDER]

http://arabianbusiness.com/saudi-arabia-introduces-sin-tax-from-today-677317.html



Saudi Arabia introduces 'sin tax' from today
By Parag Deulgaonkar

• Sunday, 11 June 2017 9:34 AM

Saudi Arabia has implemented 100 percent excise tax on tobacco products and energy drinks, and 50 percent tax on soft drinks from today (Sunday).

Last month, the kingdom announced imposing excise tax from June 11, after the Gulf Cooperation Council unified value-added tax (VAT) and excise tax treaties were ratified in May 2017.

The UAE is set to introduce the excise tax from the fourth quarter.

Price of a 250ml can of “Code Red” energy drink increased to SR4 from SR2, while Red Bull is being priced between SR10 and SR12, Saudi Gazette quoted industry sources, as saying.

Without naming any soft drink manufacturer, the daily said a global soft drink maker reduced its can size to 330ml from 355ml as it introduced a 50 percent price hike.

Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months.

While in March, UAE Federal National Council, Minister of State for Financial Affairs Obaid Al Tayer said tax on tobacco is expected to bring in $545 million (AED2 billion) in annual revenues, he gave no revenue estimate from the soft drinks segment.


In April, Adrienne D’Rose, senior manager, Deloitte, who attended the Ministry of Finance briefing on excise tax, told Arabian Business that the excise tax will be payable monthly by registered businesses, on the 15th day of the following month and companies that resort to “stockpiling” will face penalties.

Brian Conn, partner, tax advisory services, BDO, told this website earlier that the issue of increasing price or absorbing VAT/excise tax will be a major concern for companies selling small value items.

Arabian Business has approached a number of global energy and soft drink manufacturers for comments.


Your time is counted, KSA.

Yup oil market is very slow, due to two major factors, Iran sanction lifted and US start producition ...in coming years Hajj and Umrrah cost will be increased, its already very high.

 

[Saif al-Arab]

http://arabianbusiness.com/saudi-arabia-introduces-sin-tax-from-today-677317.html



Saudi Arabia introduces 'sin tax' from today
By Parag Deulgaonkar

• Sunday, 11 June 2017 9:34 AM

Saudi Arabia has implemented 100 percent excise tax on tobacco products and energy drinks, and 50 percent tax on soft drinks from today (Sunday).

Last month, the kingdom announced imposing excise tax from June 11, after the Gulf Cooperation Council unified value-added tax (VAT) and excise tax treaties were ratified in May 2017.

The UAE is set to introduce the excise tax from the fourth quarter.

Price of a 250ml can of “Code Red” energy drink increased to SR4 from SR2, while Red Bull is being priced between SR10 and SR12, Saudi Gazette quoted industry sources, as saying.

Without naming any soft drink manufacturer, the daily said a global soft drink maker reduced its can size to 330ml from 355ml as it introduced a 50 percent price hike.

Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months.

While in March, UAE Federal National Council, Minister of State for Financial Affairs Obaid Al Tayer said tax on tobacco is expected to bring in $545 million (AED2 billion) in annual revenues, he gave no revenue estimate from the soft drinks segment.


In April, Adrienne D’Rose, senior manager, Deloitte, who attended the Ministry of Finance briefing on excise tax, told Arabian Business that the excise tax will be payable monthly by registered businesses, on the 15th day of the following month and companies that resort to “stockpiling” will face penalties.

Brian Conn, partner, tax advisory services, BDO, told this website earlier that the issue of increasing price or absorbing VAT/excise tax will be a major concern for companies selling small value items.

Arabian Business has approached a number of global energy and soft drink manufacturers for comments.


Your time is counted, KSA.

*Mod edit: Personal attacks/insults are not allowed."

Great news and expected. This was talked about years ago and has nothing to do with oil prices. KSA's economy is on the right track already and the necessary economic reforms have already been implemented and praised by IMF and everyone else.

January 2017:

http://english.alarabiya.net/en/bus.../IMF-praises-Saudi-Arabia-s-budget-plans.html

May 2017:

https://english.aawsat.com/theaawsat/business/international-monetary-fund-praises-saudi-vision-2030

KSA will remain a G-20 major economy member state indefinitely and as per all economic forecasts KSA's economy is expected to be among the 13 largest in the world by 2050. 12th largest to be precise.

https://www.pwc.com/gx/en/issues/economy/the-world-in-2050.html

https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf

Saudi Arabians will remain some of the richest people in the world as well.

KSA is also one the largest surplus and creditor nations in the world (top 10), KSA's has one of the largest sovereign wealth funds in the world (soon the by far largest after the Saudi Aramco IPO materializes), trillions of USD in investment abroad, one of the youngest populations in the world (growing too which is important), one of the most educated in the Muslim and developing world, enormous natural and mineral resources, enormous potential for alternative energy (solar, wind etc.) and most importantly no taxation almost. That alone is among the largest income sources of many states. Not only no taxation for locals but also expats alike.

So all in all introducing a 100 percent excise tax on unhealthy products (that become a big economic burden when people are treated by the healthcare system due to obesity, diabetes, cancer etc.) is a brilliant idea by KSA and the GCC. 2 billion USD within 6 months is not bad either.

Saudi Vision 2030 is well on course. Great to see.

@Arabi @Full Moon @Bubblegum Crisis @Frosty

Yup oil market is very slow, due to two major factors, Iran sanction lifted and US start producition ...in coming years Hajj and Umrrah cost will be increased, its already very high.

Read my post above. It is completely normal for services to increase in price. A service like this and its price cannot be static. This happens with all products. The costs of maintaining Makkah, Madinah and running it every single day 24/7 is not cheap either. There are 1.6 billion + Muslims. There will be no lack of suitors ever.

 

[HAIDER]

*Mod edit: Personal attacks/insults are not allowed."

Great news and expected. This was talked about years ago and has nothing to do with oil prices. KSA's economy is on the right track already and the necessary economic reforms have already been implemented and praised by IMF and everyone else.

January 2017:

http://english.alarabiya.net/en/bus.../IMF-praises-Saudi-Arabia-s-budget-plans.html

May 2017:

https://english.aawsat.com/theaawsat/business/international-monetary-fund-praises-saudi-vision-2030

KSA will remain a G-20 major economy member state indefinitely and as per all economic forecasts KSA's economy is expected to be among the 13 largest in the world by 2050. 12th largest to be precise.

https://www.pwc.com/gx/en/issues/economy/the-world-in-2050.html

https://www.pwc.com/gx/en/issues/the-economy/assets/world-in-2050-february-2015.pdf

Saudi Arabians will remain some of the richest people in the world as well.

KSA is also one the largest surplus and creditor nations in the world (top 10), KSA's has one of the largest sovereign wealth funds in the world (soon the by far largest after the Saudi Aramco IPO materializes), trillions of USD in investment abroad, one of the youngest populations in the world (growing too which is important), one of the most educated in the Muslim and developing world, enormous natural and mineral resources, enormous potential for alternative energy (solar, wind etc.) and most importantly no taxation almost. That alone is among the largest income sources of many states. Not only no taxation for locals but also expats alike.

So all in all introducing a 100 percent excise tax on unhealthy products (that become a big economic burden when people are treated by the healthcare system due to obesity, diabetes, cancer etc.) is a brilliant idea by KSA and the GCC. 2 billion USD within 6 months is not bad either.

Saudi Vision 2030 is well on course. Great to see.

@Arabi @Full Moon @Bubblegum Crisis @Frosty



Read my post above. It is completely normal for services to increase in price. A service like this and its price cannot be static. This happens with all products. The costs of maintaining Makkah, Madinah and running it every single day 24/7 is not cheap either. There are 1.6 billion + Muslims. There will be no lack of suitors ever.

Your country has biggest problem, which is, its center of Islamic world. Every muslim in the world once visit these places and majority of muslim countries are poor. It's nothing against Suadi people or govt ...Increasing cost affect people of poor countries whose who make 2 dollar to 10 dollar a day.

 

[zen master]

Make no mistake, there will be a major war between the west and the al sauds in the future, maybe in 15 - 20 years from now, maybe longer, but it is going to happen.

I hope they glass every square inch of that desert when they do.

 

[Cell_DbZ]

"100% 'sin tax' on energy drinks, 50% 'sin tax' on soft drinks" Why?

 

[Saif al-Arab]

why the calls for censorship of opinion on an internet board, are you scared that it might actually turn out that way ?

the al saud state and salafist Islam are the biggest ideological enemies for the west/US.

you have nothing in common, you despise their freedoms, they hate your islamo-fascism.. how long can this petrodollar contract go on for ?

Trump is just stage one of America not being "politically correct", a political larva, next come the pupae, and then the freedom butterfly that will glass your sandpit proper.

We are only scared of Allah (swt).

I am not interested in your nonsense. You are the 10 times banned Indian clown. CBU something. Returning with a new user after every single ban.

Your mental breakdown after Trump's visit to KSA (your former deity) and usual ignorant and deluded discourse can be detected from miles away.

KSA (Bilad al-Haramain) is untouchable and I will not waste my time explaining to you why that is.

This cretin's status update:

back to be banned again, to be banned again so I can come back and be banned again, and then come back and be banned again..
​

@WebMaster @The Eagle @Slav Defence @Horus @waz will action be taken?

Is there some way that I can cut the internet connection to the call center that he sleeps, lives and works in?

 

[MultaniGuy]

why the calls for censorship of opinion on an internet board, are you scared that it might actually turn out that way ?

the al saud state and salafist Islam are the biggest ideological enemies for the west/US.

you have nothing in common, you despise their freedoms, they hate your islamo-fascism.. how long can this petrodollar contract go on for ?

Trump is just stage one of America not being "politically correct", a political larva, next come the pupae, and then the freedom butterfly that will glass your sandpit proper.

Funny part is that Saudi Arabia and USA are allies.

 

[BATMAN]

It's mazing to see the volume of propaganda peddled here against Saudi Arabia.

"100% 'sin tax' on energy drinks, 50% 'sin tax' on soft drinks" Why?

Cigarettes, energy drinks and soft drinks are injurious to health, for same reasons there are heavy taxes on these products in most of the states, where medical treatments are paid by state.
You may call it sin tax, if it suits your drive.

 

[Cell_DbZ]

You may call it sin tax, if it suits your drive.

The title reads 'sin tax', so that's why I used it. It just seems that the numbers (certainly on energy drinks) seem to be quite high and people in that country may not be able to afford that.

 

[BATMAN]

Make no mistake, there will be a major war between the west and the al sauds in the future, maybe in 15 - 20 years from now, maybe longer, but it is going to happen.

I hope they glass every square inch of that desert when they do.

Here comes reinforcements from India after yesterday's loss.

 

[Azadkashmir]

It's mazing to see the volume of propaganda peddled here against Saudi Arabia.


Cigarettes, energy drinks and soft drinks are injurious to health, for same reasons there are heavy taxes on these products in most of the states, where medical treatments are paid by state.
You may call it sin tax, if it suits your drive.

if they care about the people then put a ban on it or encourage gym. maybe they should do manual work like migrants. you know what they say OIL makes you fat.

 

[Spring Onion]

http://arabianbusiness.com/saudi-arabia-introduces-sin-tax-from-today-677317.html



Saudi Arabia introduces 'sin tax' from today
By Parag Deulgaonkar

• Sunday, 11 June 2017 9:34 AM

Saudi Arabia has implemented 100 percent excise tax on tobacco products and energy drinks, and 50 percent tax on soft drinks from today (Sunday).

Last month, the kingdom announced imposing excise tax from June 11, after the Gulf Cooperation Council unified value-added tax (VAT) and excise tax treaties were ratified in May 2017.

The UAE is set to introduce the excise tax from the fourth quarter.

Price of a 250ml can of “Code Red” energy drink increased to SR4 from SR2, while Red Bull is being priced between SR10 and SR12, Saudi Gazette quoted industry sources, as saying.

Without naming any soft drink manufacturer, the daily said a global soft drink maker reduced its can size to 330ml from 355ml as it introduced a 50 percent price hike.

Officials of Saudi General Authority of Zakat and Tax, the entity responsible for collecting VAT and excise tax, have told local media that they expect excise tax revenues of $1.87 billion (SR7bn) in just six months.

While in March, UAE Federal National Council, Minister of State for Financial Affairs Obaid Al Tayer said tax on tobacco is expected to bring in $545 million (AED2 billion) in annual revenues, he gave no revenue estimate from the soft drinks segment.


In April, Adrienne D’Rose, senior manager, Deloitte, who attended the Ministry of Finance briefing on excise tax, told Arabian Business that the excise tax will be payable monthly by registered businesses, on the 15th day of the following month and companies that resort to “stockpiling” will face penalties.

Brian Conn, partner, tax advisory services, BDO, told this website earlier that the issue of increasing price or absorbing VAT/excise tax will be a major concern for companies selling small value items.

Arabian Business has approached a number of global energy and soft drink manufacturers for comments.


Your time is counted, KSA.

what a shitty headline as delusional as the reporter of this news mr. Parag something BTW what is his faith?


Taxing tobacco heavily is a good step. Here in Pakistan we should do that as well.

How taxing energy and cold drinks become "sin tax" for this reporter?

 

[SouI]

what a shitty headline as delusional as the reporter of this news mr. Parag something BTW what is his faith?


Taxing tobacco heavily is a good step. Here in Pakistan we should do that as well.

How taxing energy and cold drinks become "sin tax" for this reporter?

Definitely agree with you. I think tobacco and such products should be outright banned for the good of the society. They are literally nothing but poison.

 

[BATMAN]

if they care about the people then put a ban on it or encourage gym. maybe they should do manual work like migrants. you know what they say OIL makes you fat.

You will be hurt either way.
As you know, beating one self is ban in Saudi and yet Iranians still complain about it.