High consumption of sugar-sweetened beverages in the Kingdom of Saudi Arabia has contributed to rising rates of chronic diseases and increasing economic burdens. In response, the government imposed an excise tax on these products in 2017, aiming to curb consumption and boost public revenues. Although this policy has had a direct impact, its implementation has been marked by several limitations that constrain its long-term effectiveness. This paper proposes an alternative policy designed to incentivize manufacturers to reduce sugar content, enhance public awareness, and support healthier alternatives, in alignment with the objectives of Saudi Vision 2030. It recommends restructuring the existing tax into a progressive model linked to the sugar content of the product, rather than imposing a fixed tax rate. It further calls for complementing this reform with additional measures, including the launch of nationwide awareness campaigns, the integration of nutrition education into school curricula, and the establishment of a health fund to support and sustain these interventions.
