Categories · International
· Tax
non-USA, by Country · Saudi Arabia
· Mid-east
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Jump to full article: Arab News (sa), 2009-10-16 Author: Fatima Sidiya * Arab News
Intro: At a time when anti-smoking campaigners are calling for an increase in cigarette duty to discourage smokers, a source at the Gulf Cooperation Council (GCC) said there would be no increase in cigarette tariffs.
The source, speaking on the condition of anonymity, said the GCC is committed to the World Trade Organization (WTO) and that this commitment does not allow GCC countries to increase cigarette duty by over 100 percent, which is already implemented. “In order to increase it, we have to be involved in negotiation with more than 120 member countries of the WTO,” he said.
He added that a meeting of GCC ministries of finance, custom and health is to be held next month to discuss the issue.
Newspapers in the Kingdom recently reported a SR1 increase on packets of cigarette, an increase of 20 percent. Asa’ad Jawhar, an analyst, said the slight increase would not stop smokers from buying cigarettes.
“The price is not high enough to discourage smokers from buying cigarettes. If we compare the prices of cigarettes in the Kingdom with European countries and the United States, we will find that our prices are 50 percent cheaper than the price in EU countries and the US. In Italy, for example, the price of a pack of cigarettes is the equivalent of SR23,” he said.
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