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At Hai Madina Supermarket in Fujairah, UAE.

PHOTO BY JONATHAN YBERA/EXPAT MEDIA


UAE brings in tax for sweetened drinks, e-cigarettes earlier than planned

 

DUBAI – The Federal Tax Authority (FTA) announced on Monday (October 7) that new taxes on e-cigarettes and sweetened beverages will be implemented on December 1 this year, according to state news agency WAM.

The FTA earlier announced that the items will be taxed starting on January 1, 2020.

On Monday, the FTA renewed its reminder to producers and importers to start registering for excise tax on the additional products, adding that fines may be imposed on those who fail to register.

The UAE Cabinet in August ruled that excise tax will be levied on any drink that has sugar or sweeteners and this includes concentrates, gels, powders, extracts and ready-to-drink beverages.

However, beverages with sugar that are exempt from tax includes ready-to-drink beverages containing at least 75 percent milk, and beverages containing at least 75 percent milk substitutes.

Tax-exempt products include milkshake, baby formula and beverages for special dietary needs or medical use.

Currently, the UAE imposes 50 percent excise tax on carbonated beverages and 100 percent tax on energy drinks and tobacco products. ICA/Expat Media

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