Evaluating Saudi Arabia’s 50% carbonated drink excise tax: Changes in prices and volume sales
Reem F. Alsukait, Parke Wilde, Sara N. Bleich, Gitanjali Singh, Sara C. Folta
Abstract
• Saudi Arabia introduced an 50 % ad valorem excise tax on carbonated drinks in 2017. • Carbonated drinks’ tax pass through rate is 110 % (+0.82 Saudi Riyal; p-value <0.05) • Carbonated drink volume sales decreased by 35 % relative to other Arab Gulf states.
Topics & Concepts
ExciseAd valorem taxValue (mathematics)Volume (thermodynamics)BusinessAgricultural economicsEconomicsTax reformPublic economicsMathematicsMacroeconomicsStatisticsQuantum mechanicsPhysicsEnergy, Environment, and Transportation PoliciesGlobal Public Health Policies and EpidemiologyTaxation and Compliance Studies