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 GAZT: The Implementation of Selective Goods Tax on Sweetened Beverages will Begin Next December

Riyadh, 26 November 2016:

The General Authority of Zakat and Tax has confirmed that as of Sunday, December 1, 2019, the decision of the GCC Unified Selective Tax Agreement to apply selective goods tax on sweetened beverages that are harmful to health will also be implemented, as the agreement previously included soft drinks and energy drinks. The tax will be 50% of the retail price for the final consumer.

GAZT has defined sweetened beverages: any product with added sugar of any sort, or other sweeteners produced for the purpose of drinking as a drink, whether it is ready to drink, concentrated liquids, powders, gel, extracts or any form that can be converted into a beverage.

GAZT also added that health reports have pointed out the negative consequences of sweetened beverage consumption, stressing that it will expose the consumer to a number of diseases such as diabetes and obesity. The consumer can replace sweetened drinks with fruits and natural juices rich in vitamins that are beneficial to the health.

GAZT has confirmed that selective goods tax will not be applied to sweetened beverages that contain 75% or more of milk/dairy products, in addition to beverages containing naturally added sugar such as natural fruit juices and special purpose medical beverages.

It is noteworthy that GAZT has an educational trip on its website GAZT.GO.SA to simplify the concept of selective goods tax and to simplify the concept of sweetened beverages through illustrations. Also, the Authority receives all inquiries about the selective goods tax through the unified call center on (19993), or via the accounts of the Authority in social media.​

26 November 2019