More taxes in UAE starting December 1


Ministry of Finance, cabinet decision, excise taxdrinks, tobacco, e-cigarette

Dubai - More products are going to be taxed.


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Published: Thu 10 Oct 2019, 12:00 AM

Last updated: Fri 11 Oct 2019, 12:19 PM

The UAE Ministry of Finance announced on Thursday its decisions to expand the scope of excise tax starting December 1, 2019. This includes Cabinet Decision No. 52 of 2019 on excise goods, excise tax rates, the methods to calculate excise prices, amendment of Cabinet Resolution No. 38 of 2017 on excise goods, excise tax rates, the formula to calculate excise prices, as well as Cabinet Decision No. 55 of 2019 on excise price of tobacco products.

Saeed Rashid Al Yateem, Assistant Under-Secretary of Resource and Budget Sector, noted that these decisions are based on the UAE's efforts to reduce harmful consumer practices. In addition to the taxation of tobacco products, energy drinks and soft drinks, excise tax has been expanded to include e-cigarettes and the liquids used with them, as well as beverages with added sugar.

Al Yateem 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."

The Ministry of Finance continues to assess its legislative system and is committed to strengthening the nation's tax laws, thereby enhancing the country's standing in various global competitiveness indicators.

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