Consuming as little as 100ml of sugary drinks per day is linked to an 18% increase in overall cancer risk and a 22% increase in risk for breast cancer.
The move comes as Crown Prince Mohammed bin Salman looking to transform the Arab nation's economy, which calls for boosting non-oil revenue.
New German research found that drinking soda and other sugar-sweetened drinks appear to be linked with more severe symptoms and disability in individuals with multiple sclerosis (MS).
The new study also contributes to the growing body of evidence of the negative health consequences of drinking sugar-sweetened beverages.
Nothing say 'party time' more than sweet and bubbly drinks that quench the thirst and tickle the tastebuds.
The excise taxes are part of a bid to tackle public health problems linked to obesity and cancer.
Taxing products such as soda, alcohol and tobacco can steer consumers toward healthier choices and avert a ruinous tumble in which obesity fuels disease and medical costs push people further into poverty, data from countries ranging from Chile to India show. The analysis was published Wednesday in The Lancet medical journal.