The Cabinet adopted a decision to reduce the consumption of sugary drinks and smoking products, by adding a number of products to the selective tax list, and applying them to these products starting from January 1, 2020, within the framework of the government's direction to preserve public health and avoid the health and financial damages incurred by society in Combating communicable diseases, in light of the government's keenness to change consumption patterns harmful to public health.
The decision targets a number of products and goods harmful to public health, such as drinks sweetened with added sugar or other sweeteners, in addition to products and devices and electronic smoking devices and liquids used in these devices, to reduce consumption of these products to promote healthy lifestyles in the community, and reduce rates of obesity and chronic diseases generally.
The decision provides for a 50% selective tax on drinks sweetened with added sugar, and any product added to a source of sugar or other sweeteners, and is produced for the purpose of consumption as a drink, whether liquid or concentrated or powders or extracts, or any image can be converted to Drink.
The decision also includes the adoption of food data requirements on drinks, through which manufacturers will be obliged to mention the amount of sugar added, and to enhance the awareness of the community on the amounts of sugar consumed, and contribute to the adoption of healthy dietary patterns for all members of the community.
It also includes the application of selective tax on electronic smoking devices and similar devices whether or not containing nicotine, tobacco or not, by 100%, including the liquid used in electronic smoking devices and similar devices, with the aim of building a safe and healthy society, by reducing Consumption of goods that harm the health of the community and the quality of life.
The items described were added to existing selective commodities, which include 100% tobacco and tobacco products, 100% energy drinks and 50% soft drinks.
Indirect tax
Selective tax shall be considered as an indirect tax to be borne by the final consumer, and shall be levied on goods that are harmful to public health, the environment, or luxury goods in varying proportions, as determined by the Implementing Regulations.
• Require manufacturers to mention the amount of sugar added to enhance awareness of the amounts consumed.
• 50% selective tax rate on beverages sweetened with added sugar or other sweeteners.
• 100% selective tax rate on electronic smoking tools, whether or not containing nicotine, tobacco.