Prices of cigarette, soft drinks to go up soon as GCC doubles tax on it
Prices of tobacco and soft drink products are set to go up soon as all Gulf Co-operation (GCC) countries begin to impose heavy taxes on these products.
Finance Ministers of different GCC countries have agreed to double the tax on tobacco products and soft drinks, reported Qatar Tribune.
The new levy, called the selective tax, will be in addition to the 5% value added tax to be implemented starting January 1, 2018.
“GCC states will double the tax on tobacco products to 200%. The tax would be collected from importers at the first port of import. It’s calculated at the import price,” Undersecretary of the UAE Ministry of Finance Younis Haji Al Khouri was quoted as saying.
The Saudi Ministry of Finance has already announced that it will start levying the new tax beginning this April.
Do you think this is a good move?
True, any price hike on cigarettes does not affect smokers. It has never worked in my country which has hiked the prices of cigarette several times in the past.The yearning for a puff is just too great in those who smoke. The only affect it may have though is for any smoker to offer a cigarette to another smoker. An offer of a cigarette may be sign of strong friendship!
Yes, what about a hike in prices of alcohol?
Necessities are just that and most people just suck it up and keep up their consumption of fuel, smokes or soda and what have you...a pack of smokes was 3 rials when I started, its 10 riyals now and I at least have yet to meet anyone who cut down on smoking solely due to price hikes... Oh well...
@Britexpat is right. What about Alcohol?
As can be seen from europe, the higher prices do not deter smokers - its is the enforcement of laws regarding smoking and banning from public places which impacts them
Smokers will be forced to smoke less ? Lol They will probably be pissed off and smoke more because of this.
It will have a positive impact on public health, smokers will be forced to smoke less and eventually get rid of their smoking habit..
Good means of generating much needed revenue - what about alcohol ?