Kuwait approves excise tax plan targeting energy drinks, tobacco and sugary drinks
Dubai: Kuwait's Cabinet has approved a draft decree-law adopting a Gulf-wide excise tax agreement that would impose taxes of up to 100 per cent on tobacco and energy drinks, as the country seeks to reduce consumption of products harmful to health and generate an estimated KD200 million in annual non-oil revenue. The Cabinet approved the draft concerning the Gulf Cooperation Council's Unified…
Kuwait's Cabinet has approved a draft decree-law introducing a Gulf-wide excise tax agreement, targeting tobacco, energy drinks, and sugary beverages. The proposed tax could generate an estimated KD200 million in annual non-oil revenue by discouraging the consumption of unhealthy products and promoting economic diversification. The 100% excise tax on tobacco and energy drinks, along with varying rates for carbonated and sweetened drinks, aims to reduce harmful product usage and strengthen economic integration among Gulf Cooperation Council member states.
The GCC agreement establishes a unified framework for imposing and collecting excise taxes, monitoring goods movement, and harmonising tax regulations across six countries. Though the government has not set a specific date for implementation, the decision was made during a Cabinet meeting chaired by Prime Minister Sheikh Ahmad Abdullah Al Ahmad Al Sabah.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
