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New excise tax on Sugary Drinks & E-cigarettes

Sugary Drinks and E-cigarettes to Cost More starting December 1

The Federal Tax Authority announced the new selective excise tax UAE on electronic smoking devices and tools and sweetened beverages will come into effect from December 1, 2019

New Excise Tax Rates

Excise Goods Rates
Liquids used for e-cigarettes with or without nicotine100%
Electronic cigarettes100%
Beverages with added sugar50%

 

The new amendments come to support the UAE government’s efforts to enhance public health and prevent chronic diseases directly linked to sugar and tobacco consumption.

The decision will also require manufacturers of sweetened drinks to clearly identify the sugar content so that consumers can make sensible, healthy choices.

Businesses who deal with excise goods have to register all goods they supply that are included in the decision in order to avoid any obstacles during importation.

Read More: UAE Excise Tax Law: Everything You Need To Know

Excise tax on the list of goods

Ministry of Finance (MOF) announced that it is extending the list of goods subject to excise tax include:

  • Electronic cigarettes (with or without nicotine)

E-cigarettes refer to all electronic smoking devices whether or not they contain nicotine or tobacco and will be levied excise tax as per GCC standards.

  • Beverages with added sugar or sweeteners

Sweetened drinks include any product to which sugar or sweetener is added and is produced as either a ready- to- drink a beverage or as a concentrate, gel, powder, extract. In that regard, sugar includes any type of sugar determined under GCC standardization organization and any subsequent and relevant standards.

  • Liquids used in electronic cigarettes

E-liquids include all liquids used in electronic smoking devices and the like, whether or not containing nicotine or tobacco.

For further clarification or inquiries about excise tax in UAE, you can contact Excise tax experts. They can guide you on new excise tax laws and how to register.

Read More: Penalties Imposed for Breaching Excise Law in UAE