UAE explores ways to implement new tax procedures

UAE explores ways to implement new tax procedures

By Staff Report

Published: Mon 23 Sep 2019, 6:00 PM

Last updated: Tue 24 Sep 2019, 7:35 PM

The Federal Tax Authority (FTA) and the Advisory Committee on Excise Goods recently met to explore ways of expediting procedures for implementing two UAE Cabinet decisions; the first being Cabinet Decision No. (52) of 2019 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price and the second being Cabinet Decision No. (55) of 2019 on the Excise Price of Tobacco Products.
The two decisions effectively expanded the scope of Excise Tax to include electronic smoking devices and liquids, as well as sweetened drinks, which join the list of Excise Goods that have been subject to the tax since October 2017, namely, tobacco and tobacco products, energy drinks and carbonated beverages. Hosted by the Advisory Committee on Excise Goods, the meeting formed part of the authority's plan to maintain constant communication and coordination with its strategic partners, introduce them to its plans for development, listen to their opinions, and hear their suggestions for encouraging taxable persons to self-comply with the taxation requirements.
In a press statement, the FTA asserted that the establishment of the Advisory Committee on Excise Goods was part of its efforts to find mechanisms and channels to maintain continuous communication between the authority and taxpayers, in order to involve them in processes, take their views on the continuous development plans implemented by the authority, and update them with the tax system.
The authority pointed out that it holds meetings periodically to contribute to the setting of the prices of goods subject to Excise Tax, to consider the classification of such goods, to develop a policy to review prices on a regular basis - as per the market requirements - and to ensure the accuracy of the price list and its updating as required. The authority asserted that the meeting was important to discuss recent developments in the retail sector with regard to Excise Goods and lauded the cooperation seen among businesses that are subject to the Excise Tax and their dedication to prompt compliance with the new regulations.
The authority called for all businesses affected by the new decisions to register their Excise Goods in the new system, reiterating that the decisions serve the UAE leadership's directives to enhance the country's competitiveness as they rely on international best practices and seek to build a safe and healthy community by curbing consumption of harmful products, all the while multiplying financial resources to expand the government's offering of services.
The authority also noted that following the successful implementation of Excise Tax on goods that are harmful to individuals' health and the environment - where carbonated drinks were assigned a 50 per cent tax and energy drinks and tobacco products incurred 100 per cent - the FTA looks forward to more positive results from expanding the scope of Excise Tax to include additional harmful products, namely sweetened drinks, which will incur a 50 per cent tax, and electronic smoking devices and liquids, which will see a 100 per cent tax is being levied. The authority stated that it had intensified its preparations for this expansion in collaboration with government and private entities to ensure an effective roll-out.

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