+ A
A -
Tribune News Network
Doha
The Gulf Cooperation Council's (GCC) unified tax system team has proposed a 100 percent selective tax on soft drinks, according to a news report.
The team has demanded imposition of tax on all soft drinks which contain sugar in the excess of 5 grams per 100 ml.
Saudi Arabia-based Makkah newspaper said the imposition of selective tax on soft drinks will be limited to all beverages containing carbon dioxide, any flavour, sugar or artificial sweeteners. The tax will also be imposed on any concentrated syrup or powder that can be converted into soft drink except for soda water.
A committee on taxation in GCC countries referred the unified selective tax draft agreement to the GCC Financial and Economic Cooperation Committee for approval, the newspaper added.
The GCC Financial and Economic Cooperation Committee recently discussed a proposal that would impose tax on goods that contain sugar and salt.
The GCC Financial and Economic Cooperation Committee was mandated to complete all necessary requirements for the decision in preparation for its signing by mid-2016 and approval in early 2017.
Earlier this year, the GCC countries agreed to introduce Value Added Tax (VAT) at a rate of five percent in 2018.
Although the general shape of the tax is already known, the final form of the VAT is still being developed and GCC government officials have confirmed that the go live-date is January 1, 2018.
