Amending the calculation of the excise tax on sweetened beverages in the Gulf Cooperation Council countries

Sweetened drinks

Sweetened beverages mean any products to which a source of sugar, artificial sweeteners, or other sweeteners have been added that are produced for the purpose of consumption as a beverage. This includes beverages in their various forms, such as ready-to-drink beverages, concentrates, powders, gels, extracts, or any form that can be converted into Drink.

Calculating the excise tax

The application of the new methodology in the Gulf Cooperation Council countries comes based on the decision of the Financial and Economic Cooperation Committee of the Gulf Cooperation Council countries to amend the mechanism for calculating the excise tax on sweetened beverages, as the new methodology is scheduled to be implemented in the Kingdom at the beginning of the year 2026 AD, after completing the necessary regulatory and legislative requirements for its application and publishing all the special details.

The aim of announcing the new methodology is within the framework of the efforts of the Zakat, Tax and Customs Authority "Zatka" To give the targeted importers and manufacturers sufficient time before the implementation begins, the next phase will also witness the holding of awareness workshops in coordination with the relevant authorities, in a way that contributes to raising awareness among the target groups of the technical details of the transition to the new approach and ensuring smooth implementation.

The new methodology also aims to enhance public health and stimulate the reduction of added sugar in drinks by providing consumer drinks with high content Low sugar, in line with international best practices.