Saudi Gazette report
DAMMAM – Since the introduction of selective tax on tobacco products and soft drinks, customs officers at the Kingdom's border crossings are extra vigilant in monitoring frequent travelers at land borders.
Lately, an increasing number of travelers who cross Saudi Arabia's land borders with Bahrain, the UAE and Kuwait have brought large quantities of energy drinks and all types of tobacco products apparently to evade the new taxes.
Isa Al-Isa, spokesman for Saudi Customs, stressed that all products subject to selective tax will be monitored by the customs officers to prevent attempts to evade tax payment by travelers. Exemptions apply to 200 cigarettes, 500 grams of tobacco products, 26 liters of carbonated drinks and 20 liters of energy drinks, Al-Isa explained.
The effects of imposing selective tax on softs drinks and cigarettes can be gauged only after Ramadan. Enforcing the selective tax laws in Ramadan gives shop owners a chance to measure the level of public demand for these products. In Ramadan, consumption of these products generally drops. Some store owners have already noticed a drop in demand.
The Zakat and Income Department has denied earlier rumors on social media, which claimed products that were subject to selective tax will have stamps indicating the tax payment abroad.
