SAUDI ARABIA
The Kingdom of Saudi Arabia has started imposing a 100% tax on tobacco and its derivatives starting since June 10. Energy drinks will also be taxed 100% while soft drinks will have a lower tax of 50%.
The government expects to collect US$2.1-2.7 billion annually from the new taxes. It also plans to introduce 5% VAT starting next January. Many Saudi citizens have openly criticized the new taxes, linking some of them to the large amounts US President Donald Trump received from the kingdom or the tens of billions of dollars in deals concluded during Trump’s recent visit, or, as more succinctly described in a tweet by a disgruntled Saudi citizen, “Trillions for Trump, and taxes for citizens.”
Citizens have also taken to social media to share lists of the new prices of many commodities, especially cigarettes, soft drinks, and other affected items. Saudis have started stocking up on these goods in anticipation of the price hike.