At the Al Hai Madina Supermarket in Fujairah.
PHOTO BY JONATHAN YBERA/EXPAT MEDIA
DUBAI – Starting on December 1, two new items will be taxed in the UAE as part of the government’s push to protect consumer health.
Products with sweeteners or added sugar will be taxed by 50 percent, while 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 announced in August.
Currently, a 100 percent tax is imposed on cigarettes, tobacco products and liquor in the UAE, and a 50 percent tax is imposed on carbonated drinks and energy drinks.
From December, the list of taxed products will expand to include sweetened drinks such as concentrates, gels, powders, extracts and ready-to-drink beverages.
The Federal Tax Authority (FTA), however, said it will not impose tax on ready-to-drink beverages containing at least 75 percent milk, and beverages containing at least 75 percent milk substitutes, such as milkshake, baby formula and beverages for special dietary needs or medical use
The FTA also reminded 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.
From December, the UAE will also levy a minimum excise tax of Dh0.40 per stick of cigarette and Dh0.10 per gram of water pipe tobacco, ready-to-use tobacco or similar product.
• 50 percent on carbonated drinks
• 100 percent on tobacco products
• 100 percent on energy drinks
• 100 percent on electronic smoking devices
• 100 percent on liquids used in such devices and tools
• 50 percent on any product with added sugar or other sweeteners
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