UAE: Excise tax on e-cigarettes and sweetened beverages to start on December 1, 2019

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Emirates News Agency :

English Translation

ABU DHABI, October 7 (KUNA) – The Federal Tax Authority (FTA) has announced the introduction of excise tax on electronic smoking devices & liquids, and sweetened beverages starting from December 1, in accordance to the Cabinet and Ministry of Finance decisions issued.

The FTA demanded that all producers, importers and stores of electronic smoking devices and sweetened beverages to register in the electronic system all the selective goods that they supply in case they were covered by the Ministerial decisions .

Such step would avoid any obstacles or irregularities to all interested parties in importation that may result from delayed or failed registration.

The UAE has introduced a selective tax starting October 2017 on goods that are harmful to public health or to the environment, in order to reduce the consumption while contributing to the increase of government revenues allocated to cover the costs of public services for public benefit.

According to the previously enacted law, the selective tax rate ranged from 50 to 100 per cent on tobacco and its derivatives, energy drinks and soft drinks.

In October 2017, more than 1,700 items were subject to selective taxation, with 60 per cent of them being included in soft drinks, 26 per cent on tobacco and derivatives and 14 per cent on energy drinks. .

It is expected that the list of goods to be included in the tax will be increased as it is applied to electronic smoking appliances and liquids.

It is noteworthy that the decision to expand the list of goods to be included in the selective tax comes in line with government’s efforts to establish healthy lifestyles for the UAE society by reducing diseases associated with consumption of goods harmful to human health, which is one of the main pillars of the “Emirates Vision 2021” The UAE aims to be among the best in the world.

Source: Emirates News Agency

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