Excise Tax is a consumption tax that applies to specific goods generally deemed harmful to human health, with the aim of reducing consumption.

All companies which import and produce excise goods are required to submit the Excise Tax return (Submission is quarterly).

Excise tax is applicable on the following goods (‘excise goods’) at their respective tax rates:

• Tobacco products: 100%.
• Carbonated drinks (non-flavored aerated water excluded): 50%.
• Energy drinks: 100%.
• Special purpose goods: 100%.

Importers of excise goods are required to pay the Excise Tax due upon import. The Excise Tax due shall be included on the importer’s import declaration and will be liable to pay the Excise Tax and any customs duties due at the point of entry of the goods in Saudi Arabia.