Saudi Arabia’s government estimates a new tax on tobacco and sugary drinks will raise between SAR8bn and SAR10bn ($2.1bn to $2.7bn) annually, Al Arabiya television quoted the General Authority of Zakat and Tax as saying on Monday.

The government has previously said it will introduce the tax, part of efforts to close a budget deficit that totalled SAR297bn last year, in the second quarter of this year.

A 50 per cent levy will be imposed on soft drinks and 100 per cent on tobacco and energy drinks, according to an official statement last December.

Also read: Saudi Shoura Council discusses soft drink, tobacco tax

UAE to implement soft drink, tobacco tax this year