Categories: World

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.

Ivan Cease

Senior editor of the Chicago Morning Star

Recent Posts

Senate Democrats mock Biden for selling weapons to Israel

Some of President Biden's strongest Senate allies are calling on Israelis to end months of fierce fighting and criticizing the…

10 months ago

The biggest cities in Ukraine are struck by Russian missiles, leaving at least 4 dead and over 100 injured

Ukraine's KYIV — At least four people were killed and nearly 100 injured when Russian hypersonic ballistic missiles attacked Ukraine's…

10 months ago

Good News That’s Much Needed for Biden

The economy is making Americans feel a little more upbeat, especially when it comes to jobs and incomes, which could…

11 months ago

College Ventilation System Reveals Missing Man

The discovery of a decaying body inside a college ventilation system marked the tragic and unexplained end to a missing…

11 months ago

Following three Palestinian shots, a Vermont man was arrested

Following the shooting deaths of three 20-year-old Palestinian-American students in Vermont, authorities have detained a man. According to a news…

11 months ago

China is told to cease “COVID deception” due to the pneumonia outbreak by the US envoy

The United States ambassador to Japan, Rahm Emanuel, urged Chinese authorities "to abandon COVID deception" and demanded that China be…

12 months ago

This website uses cookies.