Dozens of energy drink and juice factories closed in Saudi Arabia

Dozens of energy drink and juice factories closed in Saudi Arabia

The Saudi government has implemented 50% taxes on the energy drinks and other sweet juices. The additional tax of 50% has come into effect on Dec 1, 2019. The negative impacts of this heavy tax have started to be noticed in Saudi Arabia. Several energy drinks and soft drink companies have closed their business after the implementation of this tax on December 1.

The multinational companies are not affected by this tax. The small and medium-sized businesses are facing huge losses due to current taxation. They are enforced to sell the drinks at high rates that reduced the attraction of customers towards them. The drinks-related businesses are disappointed in the current situation.

Some organizations created hype in terms of the negative impacts of energy drinks. According to the energy drink experts, those organizations spread false information about the energy drinks. The government took the decision of heavy taxation on energy drinks on the base of that false information. After the implementation of the tax, dozens of soft drink businesses have shut.

According to the reports, dozens of drinks-related businesses are closer to be shut soon. The sweet drinks are said to be every item that includes sugar or any other sweetening agent. These sweet drinks are dangerous for the health of children and adults. All of the Gulf countries have taken a mutual decision to increase the taxes on sweet drinks. The decision is taken to refrain users from using these products. The higher prices of the sweet drinks will refrain the customers to buy them.

After the implementation of 50% taxes, the sweet drinks are sold at higher prices in the Kingdom of Saudi Arabia. Some sellers stocked the sweet drinks before the implementation of tax so that they could sell them on higher prices after the implementation of the tax. Some sellers sold the sweet drinks in previous stock at the normal rates.

Senior editor of the Chicago Morning Star

Related Posts
Recreational Cannabis Sales’ Taxes Collects $52 Million
Illinois has collected $52 million in the first six months of the year from taxes
Progressive Income Tax Amendment; Lawmakers Finalize Arguments
Illinois lawmakers finalize arguments for and against progressive income tax amendment to be sent to
Illinois offers free tax preparation assistance to low-income and senior citizens
The low-to-moderate income families and seniors living in Illinois are getting an opportunity to file
Pritzker’s graduated income tax polled
Gov. Pritzker’s proposal for Illinoisans to adopt to the graduated income tax is going to
IDOR begins accepting 2019 individual income tax returns on January 27
The tax filing season for the year 2020 will begin on Monday, January 27, 2020.
Chesney: Rural Illinois “Not Forgotten” when it comes to higher taxes and fees
It’s no secret that much of rural Illinois, the vast region of Illinois outside of
Rep. Joyce Mason urges Pritzker to sign Senate Bill 1300
Rep. Joyce Mason of D-Gurnee (61st Street) supported the pension reform and property tax relief
Illinois battles over fair tax in city, Illinoisans agree on fair tax
The battle of getting fair tax is on in Illinois. JB Pritzker, the governor of
Chicago Judge spikes a suit filed against TIF program
A Circuit Court judge of Cook County has spiked a suit filed against a tax-increment-financing
Will Chicagoans get Earned Income Tax Credit?
Will Chicago put back some money into the pockets of the overburdened working families? The