Riyadh: Imports of tobacco byproducts dropped by 43.1 per cent last year to stand at SR1.78 billion, due to the implementation of the excise tax.
In 2017, Saudi Arabia imported tobacco byproducts for SAR3.13 billion, before the decision to levy “sin” tax.
According to figures released by the Saudi Customs Authority, Riyadh imported 8,720 tonnes of tobacco byproducts worth SAR500 million during the first quarter of 2019.
In June 2017, Saudi started imposing a selective tax of 100pc on tobacco products and energy drinks and 50pc on fizzy drinks, Eqtisadiah reported.
Saudi Arabia became the first GCC country to levy the selective tax, followed by the UAE and Bahrain.
The Gulf Co-operation Council (GCC) member states reached a decision to impose selective taxes on items deemed harmful to health or the environment.
