Saudi Arabia Introduces Four-Tier Sugar-Based Excise Tax on Sweetened Drinks Starting January 1

• Saudi Arabia will implement a four-tier excise tax on sweetened beverages starting January 1, 2026, replacing the current flat-rate tax.
• The new tax system is based on the sugar content per 100 millilitres, with higher sugar levels resulting in higher taxes.
• The tiers are: drinks with only artificial sweeteners (no added sugar), low-sugar (less than 5g/100ml), medium-sugar (5–7.99g/100ml), and high-sugar (8g or more/100ml).
• The tax applies to all sweetened beverages, including ready-to-drink products, concentrates, powders, gels, and extracts.
• The reform aims to promote public health by encouraging lower sugar consumption and aligns with broader GCC regional efforts.

Source: gulfnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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