Excise tax on e-cigarettes and sugary drinks start on December 1 in the UAE

Abu Dhabi: The Federal Tax Authority (FTA) announced the excise tax on electronic smoking devices and tools and sweetened beverages will be effective as of December 1 2019, in accordance with the Cabinet and Ministry of Finance decisions issued in this respect.

The FTA called on importers, producers and stockpilers of electronic smoking devices, liquids used in such devices and sweetened drinks to register for excise tax system as soon as possible.

The authority stressed that registering for the tax will avoid all stakeholders any fines or obstacles that may arise from late or failed registration.

Earlier, the UAE introduced the excise tax from as of October 2017 on goods, which are deemed harmful to public health or to the environment in order to reduce consumption and increase government revenues allocated to cover the costs of public services.

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

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

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