A collapse in crude oil prices since 2014 which forced the kingdom to induce
austerity measures caught up with Saudi smokers on Sunday with Riyadh
introducing a "selective tax" which increases the price of tobacco by 100
percent.
The new tax measures also affect the prices of energy and carbonated drinks,
which are popular with Saudis.
The fresh regulations follow an agreement between the (Persian) Gulf Cooperation
Council nations based on recommendations by International Monetary Fund. (P)GCC
states have also agreed to impose a five-percent value added tax to certain
other goods in 2018.
Riyadh is currently dealing with economic struggles brought on by a budget
deficit of nearly $100 billion in 2015 caused by a sharp slump in oil prices as
well as Riyadh’s rising army expenditure, a large amount of which is being
funneled into its military campaign against Yemen.
The campaign, which lacks any international mandate and has faced increasing
criticism, has claimed the lives of more than 12,000 people, most of them
civilians.
The relentless airstrikes have also put more than half of all health facilities
in Yemen in a state of complete or partial shutdown.
SOURCE: ALALAM