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Tribune News Network
Doha
The Gulf Cooperation Council (GCC) counties are all set to impose heavy taxes on tobacco products and soft drinks soon.
Finance Ministers of the GCC countries have agreed to double the tax on tobacco products and soft drinks.
This selective tax is different from the value added tax (VAT) of five percent to be implemented on January 1, 2018.
"The GCC states have reached an agreement to double the tax on tobacco products to 200 percent. The tax would be collected from importers at the first port of import. The tax is calculated at the import price," Undersecretary of the UAE Ministry of Finance Younis Haji al Khouri said.
According to Emirati newspaper Al Ittihad, Khouri said GCC states, at their last meeting, discussed doubling taxes on a number of selected goods.
The tax will be added to the existing tax, which is 100 percent on tobacco products and that the total taxation on such products will become 200 percent.
A few days ago, the Saudi Ministry of Finance has announced that it would start levying selective tax on soft drinks, energy drinks, tobacco and its derivatives.
The Saudi Ministry of Finance said the selective tax is scheduled to be implemented in April 2017.
