JEDDAH: Prices of cigarettes and energy drinks have doubled with the implementation of an excise tax that became effective midnight Saturday in a measure unprecedented in the Kingdom.
The excise tax, commonly known as a “sin tax,” is imposed on “unhealthy products” that are likely to cause health problems and eventually increase medical expenses paid by individuals or the government, according to the General Authority of Zakat and Tax (GAZT) official website.
“We’ve communicated with the business sector and have set up many workshops to introduce the selective tax both at the GAZT and the Chamber of Commerce,” Mohannad Al-Madi, who handles public relations for the GAZT, told Arab News.
A few days prior to the implementation, some smokers struggled to find boxes of their usual cigarettes. Consumers attempted to stock up on cigarettes at their pre-tax price, while suppliers were trying to keep the products off the shelves until the prices rose.
“I went to several shops yesterday to buy the type of cigarettes I usually smoke. It was nowhere to be found,” Abdulghafour Ahmed, a middle-aged man who started smoking when he was 18, told Arab News.
Soft drinks were being placed on an empty shelf at one of the main supermarkets in Jeddah that Arab News visited Sunday afternoon. “There was nothing here yesterday,” the shelf stacker said, pointing at the shelf. “Yesterday, the price was normal. But today, a soft drink can is SR2.25 ($0.60).”
This price of a 355ml can of a soft drink matched that of another supermarket Arab News visited. The second supermarket had also kept the newly taxed drinks away from customers so they are sold 50 percent higher in price in the case of soft drinks, and double the price for energy drinks.
Consumers will now pay SR12 at one supermarket for a 250ml can of a popular taurine drink, which is priced at SR11.90 at another supermarket. Aside from tags of doubled priced energy drinks, a new sign has been posted on market shelves stating: “Energy drinks harmful to health.” The full warning matches the text on beverage cans.
The warning, written in English and Arabic, reads: “This product does not have any health benefits. Consuming more than two cans a day may negatively affect your health.” The warning mainly targets individuals under 16 years old, pregnant women, who are breastfeeding, people with heart conditions, individuals with high blood pressure or diabetes, people allergic to caffeine and athletes while exercising.
The tax authority urged producers and suppliers of taxable goods to register for the excise tax, the GAZT official website stated.
The statement read: “The GAZT has stated that every person who possesses excise tax goods should file a return for the transitional period starting Sunday (June 11) and pay accordingly within 45 days, to avoid being subject to legal penalties and fines.”
The taxing body expects to lower consumption by people with limited income of the taxed products after the price hike.
Yet Faizan Haider, a Jeddah-based Pakistani national working at a travel agency, said he would rather cut down on his food purchases than quit smoking.
“I will spend less on fast food and other stuff, but cannot quit smoking,” he told Arab News.
Haider, who has been in Saudi Arabia for 24 years, said that he was “disappointed” that the government has raised taxes on tobacco, “which is pointless.”
Regular smoker and energy-drinks lover 25-year-old Salma Walid, said the move would not make her quit.
“It’s an extra strain on the pocket, but it’s a habit that I can’t just quit or cut down on,” she said.
Walid bought her last pack of the cigarettes she smokes for SR12 one day before the tax into effect. Now it is SR24.
Gulf Cooperation Council (GCC) countries are also set to implement a value-added tax (VAT) of 5 percent on certain goods beginning in 2018.
New tax doubles price of cigarettes, energy drinks in Saudi Arabia
New tax doubles price of cigarettes, energy drinks in Saudi Arabia
KSrelief’s Masam Project clears 840 mines
- The Masam team successfully cleared four unexploded ordnances in Zinjibar
- The team successfully removed 14 unexploded ordnances from Al-Waht district
ADEN: The Masam Project, an initiative launched by the Saudi aid agency KSrelief, successfully dismantled 840 mines across various regions of Yemen during the third week of November, including 29 anti-personnel mines, 129 anti-tank mines, and 682 unexploded ordnances.
The Masam team successfully cleared four unexploded ordnances in Zinjibar in the Abyan Governorate, and 162 in Aden Governorate. Two anti-tank mines in Al-Khawkhah and one unexploded ordnance in Hays, in Al-Hudaydah Governorate, were also removed. The team cleared one anti-personnel mine and one unexploded ordnance in the Qataba district of Al-Dhale Governorate.
The team successfully removed 14 unexploded ordnances from Al-Waht district and 22 from Al-Madaribah in Lahj Governorate, while in Marib Governorate four unexploded ordnances were cleared in the Al-Wadi district, along with 12 anti-personnel mines and 120 anti-tank mines in the Marib district.
Authorities enforce ban on non-compliant trucks
- This initiative reflects the authority’s commitment to regulating the sector
- Foreign trucks are restricted to transporting goods from abroad to designated delivery points
RIYADH: The Transport General Authority has announced the seizure of many foreign trucks found violating transportation regulations and legislation while transporting goods between cities in the Kingdom.
This initiative, undertaken in collaboration with relevant authorities, reflects the authority’s commitment to regulating the sector, promoting compliance, ensuring fair competition, enhancing the security and safety of transportation services, and preserving public resources and road infrastructure.
The authority said that the mechanism adopted to control foreign truck transport operations — in coordination with various government entities — prohibits traders, factories, importers, institutions and companies from contracting with non-Saudi vehicles.
Foreign trucks are restricted to transporting goods from abroad to designated delivery points in Saudi cities or on their way back to their country of origin. This return must originate from the same delivery point or from any city along the return route. Such operations also require a permit issued by the authority.
Saudi citizen wanted on suspicion of corruption extradited to Kingdom from Russia
- Abdullah bin Awadh Aydha Al-Harthi was wanted on suspicion of financial and administrative corruption crimes
RIYADH: A Saudi citizen suspected of corruption crimes has been extradited back to the Kingdom from Russia, the Oversight and Anti-Corruption Authority, Nazaha, announced on Friday.
Abdullah bin Awadh Aydha Al-Harthi was wanted on suspicion of financial and administrative corruption crimes, the Saudi Press Agency reported.
The transfer was carried out as part of a memorandum of understanding between Nazaha and Russia’s Public Prosecution, and “underscores the strong commitment of both nations to uphold the rule of law and promote international cooperation in the fight against corruption,” SPA added.
Nazaha highlighted the role played by the Russian Prosecutor General’s Office in responding to its official request to extradite Al-Harthi and praised the support of the global Globe E Network and INTERPOL for its continued assistance in tracking individuals involved in corruption crimes and curtailing their safe havens.
Nazaha reaffirmed its resolve to pursue corrupt individuals both within and beyond the Kingdom’s borders, holding them accountable in accordance with Sharia and legal frameworks.
The authority said it remained steadfast in its mission to recover state funds and assets misappropriated through corruption, ensuring they are returned to the national treasury.
Heritage Commission, KSGAAL launch global blog to preserve cultural and linguistic heritage
- The Naqsh blog aims to preserve Arab cultural and linguistic heritage
- Naqsh is a visually documented linguistic blog for Arabic inscriptions found on stones, tablets, rocks or any other artifacts in the Kingdom
RIYADH: The Saudi Heritage Commission, in collaboration with King Salman Global Academy for Arabic Language, or KSGAAL, launched the Naqsh blog on Thursday on the sidelines of the Saudi International Handicrafts Week exhibition.
The Naqsh blog aims to preserve Arab cultural and linguistic heritage, providing a reliable source for researchers and those interested in archaeology, history, the Arabic language and comparative studies, an official statement said.
The blog also seeks to enhance the scientific reference for trustworthy Arabic data and develop AI models for analyzing and interpreting inscriptions, in alignment with the objectives of the Human Capital Development Program, one of the Saudi Vision 2030 initiatives, and the National Culture Strategy.
Abdullah Al-Washmi, secretary-general of KSGAAL, said that the path of linguistic blogs served related scholars and researchers and was an integral part of the academy’s linguistic work, projects and institutional initiatives.
Naqsh is a visually documented linguistic blog for Arabic inscriptions found on stones, tablets, rocks or any other artifacts in the Kingdom.
The blog includes commemorative, religious, literary and commercial inscriptions that reflect the cultural and social conditions throughout the ages, he said.
The blog highlights the historical and linguistic significance of Arabic inscriptions, understanding the linguistic and cultural development in the region, and also serves as a crucial source for studying the evolution of writing and Arabic calligraphy through the ages, he said.
In early 2024, KSGAAL launched the “Falak” platform for linguistic databases, which includes several linguistic platforms featuring advanced computational tools.
These tools facilitate text analysis and linguistic data tagging and enable Arabic language enthusiasts to collaborate in the field of Arabic language computing.
The “Falak” platform also aims to enhance the scientific reference for reliable Arabic linguistic data. It is one of the academy’s prominent initiatives in the field of linguistic computing, containing more than 1.5 billion words.
Sami Al-Mukhayzim, chairman of the Saudi Historical Society, told Arab News that the Naqsh blog serves as a highly significant historical resource.
Inscriptions are among the oldest tools documenting vivid and accurate information about ancient civilizations. These inscriptions contribute to illustrating the development of writing, ideas, beliefs and the daily interactions of those civilizations, he said.
Abdullah Al-Khuzam, a craft trainer at the Royal Institute of Traditional Arts, said that documenting human heritage was one of the fundamental administrative and civilizational methods and an essential enabler for building a growing future grounded in a distinctive historical and archaeological depth.
The Naqsh blog will serve as a reference for future generations, providing them with a foundation as they venture into new and contemporary horizons, drawing inspiration from heritage to develop ideas in a modern form that suits today’s world, he said.
Saudi, Japanese agencies agree to cooperation on humanitarian work
Saudi aid agency KSrelief and the Japan International Cooperation Agency have agreed to cooperate on humanitarian work.
KSrelief director of partnerships and international relations, Hana Omar, and JICA’s representative from its Yemen office Kato Ken met on the sidelines of the International Conjoined Twins Conference in Riyadh.
They discussed humanitarian relief affairs, topics on the agenda of the conference, and prospects for cooperation between the two organizations, the Saudi Press Agency reported.
JICA praised the Kingdom’s humanitarian and relief programs.
