Economy
Logo
 

This is how much soft drinks, cigarettes will cost from Sunday

Waheed Abbas/Dubai
Filed on September 30, 2017 | Last updated on September 30, 2017 at 04.32 pm
Soft drink prices will increase from Dh1.50 to Dh2.25 while the price of a pack of cigarettes will double from an average Dh8 to Dh16.
Soft drink prices will increase from Dh1.50 to Dh2.25 while the price of a pack of cigarettes will double from an average Dh8 to Dh16.

(Alamy Image)

The UAE has imposed a 50 per cent excise on carbonated beverages and 100 per cent on tobacco and energy drinks.


Prices of soft drinks, tobacco and energy drinks will be revised and they will cost more from Sunday as the UAE's decision to impose excise on the sale of these goods comes into effect from October 1.

The UAE has imposed a 50 per cent excise on carbonated beverages and 100 per cent on tobacco and energy drinks. Soft drink prices will increase from Dh1.50 to Dh2.25 while the price of a pack of cigarettes will double from an average Dh8 to Dh16. The retail price of energy drinks too will double, from an average Dh5 - Dh10 per can to Dh10 - Dh20 - depending on the brands.

The UAE's Ministry of Finance has released executive regulations of the Federal Decree-Law No.7 of 2017 and Cabinet Decision No. 37 and 38 on excise goods, tax rates and the methods of calculating the excise price.

According to the regulations, a taxable person has to submit returns on excise tax no later than the 15th of every month.

Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, said the Cabinet's decision marks the culmination of the country's preparation phase to initiate excise tax in the country.

"We have successfully set up the adequate legislative and administrative environment for launching the tax system. The laws and regulations that have been issued seek to regulate the relations between all stakeholders, allowing them to work together and curb the consumption of these harmful goods, which help establish a healthier environment in the country," he said.

According to a statement issued by Wam, Cabinet Decision No.37 on the Executive Regulation of Federal Decree-Law No.7 of 2017 identifies the role of the person who is liable to pay tax, the person who imported, produced or stockpiled the goods and has not settled the tax in the supply chain and the role of the investor with financial interests as well as the owner of the excise goods.

In certain cases, as stated in the law, the onus to pay excise tax could be on the warehouse keeper where the goods have been released from if the person responsible for the tax has failed to account for to the Federal Tax Authority (FTA).

However, the stockpiler will not be liable for tax if he obtains excise goods before the law came into force and the goods were ready for release for consumption.

The law states that if a taxable person fails to notify the authority of his obligation to register for tax, the law allows Federal Tax Authority to register them with effect from the date when the Decree-Law came into effect.

The law mandates that declarations must be filed regularly and the tax records be kept such as retaining price lists of excise goods produced, imported or sold in a specific timeframe, limitations and conditions.

According to a note by global consultancy Deloitte, all UAE businesses - which include retailers, hoteliers, restaurants as well as imports and producers - that have excise goods are required to have a stock audited on hand ready for October 1.

"This is because there is a liability to account for 'excess' stock on hand. Excess stock is defined as more than 2 months' worth of stock or more than is normally held by the business, but an audit is required regardless. Businesses without such a stock take may be subject to penalties," it said in a note on its website.

The Federal Tax Authority has indicated that they expect the audit to be conducted by a third party, it said.

- waheedabbas@khaleejtimes.com





ERROR: Macro /ads/dfp-ad-article-new is missing!
MORE FROM Business
MORE FROM Khaleej Times
CurrentRequestUnmodified: /apps/pbcs.dll/article?avis=KT&date=20180627&category=ARTICLE&lopenr=180629331&Ref=AR&profile=1039 macro_action: article, macro_profile: ,1039,1036 macro_adspot:
 
 
 
 
KT App Download
khaleejtimes app

All new KT app
is available
for download:

khaleejtimes - android khaleejtimes - ios khaleejtimes - HUAWEI AppGallery