- Starting 1 January 2026, Saudi Arabia will implement a new tiered volume-based excise tax model for sweetened beverages, replacing the current flat-rate tax, following an amendment approved by the Gulf Cooperation Council on 8 October 2025.
- The new excise tax model will categorize beverages based on their total sugar content per 100 ml, with different tax rates: zero for sugar-free and low-sugar beverages, SAR0.79 for medium sugar, and SAR1.09 for high sugar content.
- Businesses operating in Saudi Arabia must proactively comply with the new tax model by accurately reporting the sugar content of their products to avoid financial liabilities and ensure smooth operations under the revised regulations.
Source EY
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