The Kingdom of Saudi Arabia has recently changed the tax rates on a number of its goods, one of which is tobacco. This has now taken effect as restaurants throughout the Kingdom are applying the new taxation to pipes, shisha and hookah. Residents throughout the country are furious.
According to PricewaterhouseCoopers, a leading network of firms, Saudi Arabia’s General Authority of Zakat and Tax (GAZT) has recently this year rolled out a number of new taxation rates on a number of popular goods.
Tobacco in particular has a 100% tax, meaning restaurants which serve tobacco products such as shisha are effectively doubling their prices. According to Gulf News, a number of KSA restaurants have stopped serving the priced-up shisha all together, while others have resorted to lowering their prices to keep customers.
Arabic hashtag translated to “tax on hookah restaurants” is currently gaining traction on Twitter, with people showing the bill of their doubled up hookahs and sharing their personal beliefs against the steep taxation.
#ضريبة_مطاعم_التبغ
تنبيه ..
هناك ضريبة 100٪ على (كل منتجات) المطاعم و المقاهي التي تقدم الشيشة ، وليس على الشيشة فحسب .. فأن كان العشاء يٌقدر ب 110 ريال سعودي .. الضريبة ستكون مثلها، والمجموع سيكون 220 ريال سعودي حتى لو لم تطلب شيشة ! pic.twitter.com/boWBZIWKdn— م . خليل فران (@khalilfarran) October 12, 2019
مع البدء في تطبيق #ضريبة_مطاعم_التبغ على المطاعم التي تقدم الشيشة والمعسل بنسبة ١٠٠٪ من الفاتورة حتى لو لم تحتوي الفاتورة على اي طلبات شيشة او معسل،اقترح على #وزارة_الشؤون_البلدية @saudimomra إلزام تلك المطاعم والمقاهي بوضع لوحة في المدخل تبين ذلك حتى لا يتورط الزبون عند الدفع pic.twitter.com/xyXKMVZyni
— جمال عبدالله الهندي (@jamal_hindi) October 12, 2019
#ضريبة_مطاعم_التبغ
تنبيه ..
هناك ضريبة 100% على (كل منتجات) المطاعم و المقاهي التي تقدم الشيشة وليس على الشيشة فحسب
إذا كان العشاء بـ 110 ريال، الضريبة ستكون مثلها، والمجموع سيكون 220 ريال حتى لو لم تطلب شيشة !ما رأيكم؟ pic.twitter.com/WNAAG4PBiA
— حقوق الضعوف (@hukusfof) October 12, 2019
“This is an indirect way to prohibit shisha without actually prohibiting it,” one Twitter user said.
The World Health Organisation has found that raising prices of tobacco is an effective method for helping people to quit. WHO however did stress that taxation rates on the product should be raised periodically and gradually and the profit from the tax should be funnelled into healthcare.
Saudi Arabia’s Ministry of Health has also banned showing shisha smoking on local television as part of its Help Us … We Will Help You campaign against smoking, The National explains.
KSA is currently undergoing a series of changes to its traditional society and economy. In line with Crown Prince Mohammed bin Salman’s Vision 2030 to diversify the Saudi economy and reduce its dependence on oil exportation. Such changes include its new highly successful tourism visa and a series of legal relaxations in the Kingdom.
