SAUDI GAZETTE

JEDDAH — Tobacco traders and suppliers in the Kingdom are complaining about surplus stocks since many smokers in the Kingdom have stopped buying from the local markets to avoid taxation. Instead, they purchase cigarettes for personal use from neighboring Arab and Gulf countries.

In June, the Saudi government imposed new tariffs on tobacco products and carbonated beverages. The Gulf countries had agreed on imposing selective taxes on tobacco as well as carbonated soft and energy drinks starting 2017. Due to the delay in introducing the new tax in those countries, many people who travel overland to Bahrain, the UAE and Kuwait bring large quantities of energy drinks and all types of tobacco products while coming back, apparently to evade the new tax.

Isa Al-Isa, spokesman for Saudi Customs, stressed that all products subject to selective tax will be monitored by the customs officers to prevent attempts to evade tax payment by travelers. However, 200 cigarettes, 500 grams of tobacco products, 26 liters of carbonated drinks and 20 liters of energy drinks for personal use are exempted from the tax, Al-Isa explained.

Passengers are also allowed to travel with two boxes of tobacco for personal use.

According to Makkah newspaper, tobacco sellers and suppliers are complaining that some people smuggle cigarettes from the Gulf countries and sell them in the local market at lower prices. This has affected sales at legal stores, and the traders have approached the authorities with their complaints.

Mohammed Ibrahim, a smoker in his 50s, has explained that now he buys his cigarette from Egypt because it is much cheaper than the Kingdom.

He said, “I bought 200 cigarettes and my son also brought a similar quantity. It cost me only a little more than half the price of buying in the local market.”

Maha Hassan, a female smoker in her 30s, has said she keeps asking acquaintances traveling to the Gulf countries to buy for her tobacco.

“Honestly, the quality of tobacco in other Gulf countries is better than here and it is cheaper now. Two boxes of cigarettes here costs around SR250. Outside the Kingdom it costs only SR160, which is almost half the local price,” she said.

Salma Khalid, a Saudi smoker in her 30s, said before imposing the new tax she used to buy the tobacco from airports at other Gulf countries because they always had offers.

"I used to buy for my relatives, too. But I do not know whether people buy cigarettes outside the country in order to sell it in the Kingdom. I believe people should not do this even if it is highly profitable,” said Khalid.