Concurrently with Imposing the Selective Tax on Fizzy Drinks and Tobacco Products
The Ministry of Commerce and Investment has received more than 6,000 consumer calls from different regions of the Kingdom, including 2101 Commercial Violation Reports, related to the selective tax on harmful goods, while the other reports related to inquiries and remarks regarding the implementation mechanism of such regulations.
Notably, MCI incoming calls relevant to the selective tax reached 60% of the total calls during the past 24 hours. This number of calls is the largest number received by MCI Consumer Call Center in one day, since the founding of the Ministry. MCI has taken the necessary measures by imposing instant fines on the violating institutions, in accordance with the Instant Fines & Penalties Regulations.
Meanwhile, MCI inspection teams have detected 2101 commercial violations, related to the abstention of selling or increasing the price of the items included in the Ministerial Decree, in all regions of the Kingdom. This is concurrently with the introduction of the selective tax, in its first phase, on harmful goods, including fizzy drinks, power drinks and tobacco products.
With the announcement of imposing the selective tax, the Ministry responded and treated 619 complaints, related to the abstention of selling, also 1482 complaints about increasing the prices. Instant penalties were imposed on the violators, especially those who are selling with the new price without settling their tax status, or presenting the purchase invoices with the new prices, all that in accordance with the Instant Fines & Penalties Regulations.
The Ministry of Commerce and Investment would like to emphasize the joint coordination and cooperation with the General Authority for Zakat and Income to follow up the first phase of the implementation of the selective tax decision on harmful goods, issued by the Council of Ministers Decree No. 495 dated 05.08.1438.
Notably, MCI has given the instructions to all its branches and offices in various parts of the Kingdom, to monitor and control any irregular practices that may precede the implementation of the selective tax decision. Besides taking the necessary and legal measures against any violations, in accordance with the Instant Fines & Penalties Regulations, issued by the Council of Ministers Decree No. 218 dated 06.08.1422 H.
MCI also stressed the need to monitor any irregular practices that may occur, such as storing the items, subject of the selective tax, or refraining from selling, on purpose of waiting until the start of the actual implementation, or not handing over the purchase invoices, or increasing the prices before the decision is implemented.