Bloomberg reported, citing some sources, that GCC Countries plan to sign an agreement to impose early 2017 value added tax (VAT) of 100 per cent on tobacco products, 100 percent on energy drinks and 50 per cent on soft drinks.
The VAT will be imposed on harmful products, like tobacco products, and sugary drinks; luxury goods; and basic commodities with the aim of curbing bad consumption practices, reducing imports, and providing more revenues and incomes for the public treasury to channel them to health programmes.
The Committee on Financial and Economic Cooperation will be assigned to finish all requirements necessary to sign the agreement before mid-2016 in preparation for its coming into force early 2017.
