Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) will introduce a new four-tier excise tax system on sweetened beverages from January 1, replacing the current flat 50 per cent rate.
Under the revised system, tax will be calculated based on sugar content per 100 ml, with higher sugar levels attracting higher taxes and sugar-free or low-sugar drinks taxed at lower rates. The authority has classified beverages into four categories, ranging from sugar-free drinks with artificial sweeteners to high-sugar beverages containing 8 grams or more per 100 ml.
ZATCA said the move aims to promote public health by reducing sugar consumption and encouraging manufacturers to offer lower-sugar products, in line with GCC health initiatives.
