The UAE Ministry of Finance announced the Excise Tax Law in the UAE will be effective starting October 1.
The announcement comes in the heels of President His Highness Sheikh Khalifa bin Zayed Al Nahyan’s issuance of the Federal Decree-Law No. 07 of 2017 on Excise Tax.
“The tax shall impact all excise goods consumed inside the country, including all the country’s free zones and ports,” said Younis Haji Al Khouri, the Undersecretary of the Ministry of Finance.
Tobacco products, fizzy drinks, and certain soft drinks will be impacted by the imposition of tax.
According to Al Khouri, the percentage of the tax will reach 100 percent for tobacco products and energy drinks and 50 percent for sugary fizzy drinks which means that a pack of cigarettes and an energy drink will cost you double starting October 1.
“The Excise Tax will help us build a healthier and safer society. This tax is set to discourage the consumption of products that negatively impact the environment and, more importantly, people’s health, while the revenues it generates will go towards supporting advanced services for all members of society,” HH Sheikh Hamdan bin Rashid said as reported by The Filipino Times.
Exemptions will be on products to be taken abroad purchased at airports by travelers.
“Commodities carried away out of the country by outbound travellers shall not be impacted by the tax, while those carried into the country shall be subject to the new law,” he added.
Credit: Emirates News Agency (WAM)
