Saudi Arabia to impose tax on tobacco, sugary drinks on June 10

The GCC have agreed to impose the tax on tobacco. (AFP)
Updated 28 May 2017
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Saudi Arabia to impose tax on tobacco, sugary drinks on June 10

DUBAI: Saudi Arabia will impose a special tax on tobacco and sugary drinks on June 10, as part of a series of steps toward closing a budget deficit caused by low oil prices.
Khalid Khurais, director of the selective tax unit of the General Authority of Zakat and Tax, told Al-Arabiya television on Sunday that rules covering the tax were published in the official gazette last week and would take effect after 15 days.
Officials have said they expect to raise between SR8 billion and SR10 billion ($2.1 billion to $2.7 billion) annually from the tax, which will comprise a 50 percent levy on soft drinks and 100 percent on tobacco and energy drinks.
The tax marks a big change in policy for Riyadh, which has traditionally kept taxation minimal but now plans a series of levies and fees by 2020 to close a budget gap that totaled SR297 billion last year. Next January it plans to impose a 5 percent value-added tax (VAT), a much bigger revenue-generating step.
The other countries in the six-nation Gulf Cooperation Council (GCC) have also agreed to impose the tax on tobacco and sugary drinks, and are expected to do so in coming months.


Iran falls to sixth biggest oil supplier to India as sanctions bite

Updated 14 December 2018
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Iran falls to sixth biggest oil supplier to India as sanctions bite

  • Tehran dropped two places to become only the sixth biggest supplier after New Delhi cut purchases due to the impact of US sanctions
  • The UAE, which was the sixth biggest oil seller to India in October, became the third-top seller to India in November

NEW DELHI: India’s monthly oil imports from Iran plunged to their lowest in a year in November with Tehran dropping two places to become only the sixth biggest supplier after New Delhi cut purchases due to the impact of US sanctions, according to ship tracking data and industry sources.
Last month, the US introduced tough sanctions aimed at crippling Iran’s oil revenue-dependent economy. Washington did, though, give a six-month waiver from sanctions to eight nations, including India, and allowed them to import some Iranian oil.
India is restricted to buying 1.25 million tons per month, or about 300,000 barrels per day (bpd).
In November, India imported about 276,000 bpd of Iranian oil, a decline of about 41 percent from October and about 4 percent more than the year-ago month, ship tracking data obtained from shipping and trade sources showed.
After abandoning the 2015 Iran nuclear deal, US President Donald Trump is trying to force Tehran to quash not only its nuclear ambitions and its ballistic missile program but its support for militant proxies in Syria, Yemen, Lebanon and other parts of the Middle East.
India’s imports from Iran in November, included some parcels that were loaded in October. In November, Iraq and Saudi Arabia continued to be the top-two oil sellers to India.
The UAE, which was the sixth biggest oil seller to India in October, became the third-top seller to India in November, knocking down Venezuela to fourth position.