Saudi Arabia already has imposed heavy excise taxes on tobacco, soda and energy drinks back in 2017. Now, that tax has been extended to e-cigarettes and sweetened drinks.
According to Bloomberg, all drinks with added sugar will be subject to a 50% levy and e-cigarettes and their accompanying liquids will face a 100% levy.
This levy will be in addition to the 5% VAT that is mandatory on almost all consumer products.
The new taxes will not only deter the masses from these products but will also boost non-oil revenue for the Kingdom. The exact of when these new taxes will roll out has not been revealed but it is speculated to be in the near future.