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RIYADH, March 24 (Xinhua) -- Saudi Arabia will delay the enforcement of selected taxes that was supposed to begin on April 1, Sabq local online news reported on Thursday.
Sources confirmed to the online portal that the delay was due to the need to carry some regulative formalities. It is predicted that the delay won't last as late as mid of 2017.
The selective taxes that will be implemented by all Gulf countries target harmful products, including tobacco products and power drink by 100 percent and fizzy drinks by 50 percent.
Besides the selective taxes, the Saudi cabinet approved in January unified agreement on Value Added Tax (VAT) in the Gulf Cooperation Council (GCC) states. Saudi Arabia's 2017 state budget recommended a 5 percent VAT from 2018, without any change in the prices.
The decision will end decades of tax-free situation in the region as a measure to cope with the unstable economies amid the dropping oil prices in the international markets.
