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2 new items to be taxed in UAE as it expands list of taxable items


DUBAI – The UAE Cabinet on Tuesday (August 20) announced that is expanding a list of taxable products to include two new items starting on January 1, 2020.

The Cabinet, in a statement, that excise tax will be levied on sweetened beverages and electronic smoking devices.

“The decision comes to support the UAE government’s efforts to enhance public health and prevent chronic diseases directly linked to sugar and tobacco consumption,” according to the Cabinet General Secretariat.

Products with added sugar or sweeteners will be taxed by 50 percent. This includes beverages, liquid, concentrate, powders, extracts or any product that may be converted into a drink, the Cabinet said.

“The decision also requires manufacturers to clearly identify the sugar content in order for consumers to make sensible healthy choices,” the Cabinet said.

Meanwhile, electronic smoking devices and their liquids will be taxed by 100 percent. “The decision aims at reducing the consumption of harmful products that put the health of people and environment at risk,” the Cabinet said.

The UAE Government introduced excise tax on tobacco and other items in 2017. Currently, a 100 percent tax is imposed on cigarettes and liquor in the UAE. ICA/Expat Media


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