|10 October, 2019

Sugary drinks, e-cigarettes to cost more in the UAE from December 1

Ministry of Finance will undertake periodic studies on excise tax to ensure its optimal application

A 32-ounce soda is filled at a Manhattan McDonalds on September 13, 2012 in New York City. Image for illustrative purposes.

A 32-ounce soda is filled at a Manhattan McDonalds on September 13, 2012 in New York City. Image for illustrative purposes.

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The UAE’s Ministry of Finance (MOF) is increasing excise tax on on e-cigarettes and the liquids used with them, as well as beverages sweetened with added sugar starting from December 1 this year.

In August MOF had announced that it will issue a decision on the implementation date of the excise tax, which is set to be before January 1, 2020.

Currently goods such as tobacco products, soft drinks and energy drinks have an excise tax.

Saeed Rashid Al Yateem, Assistant Under Secretary of Resource and Budget Sector said: “The Ministry of Finance is keen to cooperate with all concerned entities to conduct in-depth studies on the direct and indirect negative effects of harmful consumption patterns.”

“We would also like to undertake periodic studies on excise tax to ensure their optimal application. This in order to fulfil the government’s goals of well-being for all members of society, and to achieve the third Sustainable Development Goals to ensure healthy lives for all at all ages.”

(Writing by Gerard Aoun, Editing by Seban Scaria)

(gerard.aoun@refinitiv.com)  

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© ZAWYA 2019

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