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RIYADH – The Shoura Council on Sunday approved the selective tax draft, which will be referred to Custodian of the Two Holy Mosques King Salman.
The approval came during the Shoura Council ordinary session held on Sunday in Riyadh under the chairmanship of Sheikh Abdullah Bin Muhammad Bin Ibrahim Al Ali, chairman of the Shoura Council.
In a statement following the session, Dr. Yahya Bin Abdullah Al-Samaan, assistant chairman of the Shoura Council, said that the council took its decision after hearing the opinions of the Financial Committee on the observations and viewpoints of Council’s members during the discussions on the draft regulation during the session held last Wednesday.
Dr. Al- Samaan said that the draft regulation has come on the basis of the unified agreement on selective tax signed by GCC countries on Oct. 10, 2016.
He said that paragraph 2 of Article 29 of the GCC agreement states that each country shall take the necessary measures for issuing a local law for laying down the rules for implementing the agreement and draw up the policies and procedures.
It is proposed to put 100 percent tax on tobacco and its products and 50 percent tax on energy and carbonated drinks in view of the harmful effect of these products on human health.
© The Saudi Gazette 2017
