Dubai: Kuwait's Cabinet has approved a draft decree-law adopting a Gulf-wide excise tax agreement that would impose taxes of up to 100 per cent on tobacco and energy drinks, as the country seeks to reduce consumption of products harmful to health and generate an estimated KD200 million in annual non-oil revenue.

The Cabinet approved the draft concerning the Gulf Cooperation Council's Unified Excise Tax Agreement and its amendment during a meeting on Tuesday, October 27, and referred it to Emir Sheikh Meshal Al Ahmad Al Jaber Al Sabah for approval, according to an official statement.

Under the proposed framework, energy drinks and tobacco products would be subject to a 100 per cent excise tax, while carbonated beverages would face a 50 per cent levy.…