Posted by : Aahil Shaik
Friday, October 10, 2025
Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026
The Monetary and Financial Cooperation Committee of the Gulf Cooperation Council (GCC) has determined to replace the way in which selective tax is calculated on sweetened drinks. The brand new tax system will begin in Saudi Arabia on January 1, 2026.
To make this transformation occur, the Zakat, Tax and Customs Authority (ZATCA) has posted instructed updates to the foundations for the Excise Items Tax Regulation on the Public Session Platform “Istitlaa.”
These amendments describe how the transition to the brand new sugar-based mannequin will work. The ZATCA Board of Administrators has permitted opening the session, and the general public can ship suggestions and recommendations till October 23.
Sweetened drinks are outlined as any drink containing added sugars, synthetic sweeteners, or different sweetening substances. The excise tax covers all kinds of drinks, together with ready-to-drink merchandise, concentrates, powders, gels, extracts, or every other kinds that may be combined right into a beverage.
The GCC’s choice to alter the calculation technique applies to all member states, with Saudi Arabia implementing it first in 2026, after finishing all legislative and regulatory procedures and publishing full particulars.
Saudi Arabia to Introduce New Sugar-Based mostly Tax on Sweetened Drinks from January 2026 |
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