Saudi Arabia’s new 100pc shisha tax sparks fury | Malay Mail

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RIYADH, Oct 22 — A decision to impose a 100 per cent tax on bills at restaurants that serve shisha has ignited criticism on social media in Saudi Arabia, where the water pipes are a popular pastime. The furore has also been fuelled by confusion over how the tax is applied. In the meantime, some...

There were suggestions that the new shisha tax could be a measure to protect public health. — AFP pic

The government’s official gazette said earlier this month that the tax will apply to all tobacco products. A number of restaurants and cafes contacted by AFP said they believed that the tax applies to all table orders in any establishment that serves tobacco products, whether or not the order included shisha.

Many people posted photos of their restaurant bills, with totals of more than double the initial amount when taking into account the new 100 per cent tax and a still-unpopular five per cent value added tax which went into effect last year.In the face of persistent budget deficits, the world’s top crude oil exporter has resorted to measures like cutting subsidies on fuel and power and imposing new taxes including on cigarettes and soft drinks.

 

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