Cigarette, alchohol prices to rocket up in GCC

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Cigarette and alchohol prices to rocket up in GCC

Gulf Cooperation Council (GCC) will double the tax on 93 items including tobacco, alchohol, energy drinks and luxury cars in three months.

Cigarette and alchohol prices to rocket up in GCCAccording to the Saudi budget document published recently, “the GCC countries have already agreed to implement selective taxes on tobacco, and soft and energy drinks during the current fiscal year 2017”.

Last week, the Saudi Ministry of Finance clarified that the tax will be imposed only after the ratification of the uniform agreement on selective tax and the issuance of the domestic rules of procedure in line with the decisions adopted by the Supreme Council of GCC leaders. The proposed date for its implementation is April 2017, the statement added.

According to media reports the tax will be added to the existing tax, which is 100 per cent on tobacco and alcohol, and that the total taxation on such products will become 200 per cent.

Meanwhile, Abdulrahim Al Naqi, secretary-general of the Federation of Chambers of GCC said the GCC will gradually implement a selective tax on 93 commodities starting the second quarter of this year and expand to cover all member countries by the beginning of 2018.

He explained that each GCC country will determine the value of its own selective tax.

Al Naqi said there is a need to spread awareness among the region’s residents as well as the private sector before the implementation of the decision.