RIYADH, May 27 (Xinhua) -- Saudi Arabia announced on Saturday that the selected tax will be implemented in two weeks and the value-added tax (VAT) on January 1, Sapq online local news reported.
The announcement was made by General Authority of Zakat and Tax based on a decision taken by the General Secretariat of Gulf Cooperation Council (GCC) on May 23.
The selected tax was supported to be enforced on April 1, but it was delayed to carry some regulative formalities, especially the rules of the tax.
The selective taxes that will be implemented by all Gulf countries target several items, 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 a unified agreement on VAT in 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 region as a measure to cope with the unstable economy after the dropping oil prices in the international markets.
