Saudi Arabia adds 100% tax to vapor products

Saudi Arabia has imposed a special tax on electronic cigarettes, extending similar taxes introduced in 2017 as it seeks to reduce a budget deficit caused by low oil prices, according to a story published by Reuters.

The General Authority of Zakat and Tax said a 100 percent tax would be levied on electronic cigarettes and products used in them, including e-liquids. Saudi Arabia, the Arab world’s largest economy, already had a 100 percent tax on cigarettes and tobacco products.

The authority took the decision on May 15 and it became effective from Saturday after publication in the official gazette, according to the story.

The taxes fall under the category of selective taxes on products deemed harmful to public health.