As everyone’s aware, VAT is soon going to be implemented in the UAE, and according to a recent update, the excise tax will be imposed on a select list of products.
The list of products that will be subject to excise duty include, tobacco, energy drinks and certain soft drinks. Energy drinks and cigarettes will be subject to a 100% tax, with a 50% tax added to carbonated beverages.
Reports also suggest that as of January 1, 2018, additional products will be added to the list, subject to a VAT of 5%.
Speaking about the implementation of tax on certain products, H.H. Sheikh Hamdan bin Rashid Al Maktoum., said, “The Excise Tax, in particular, will help us build a healthier and safer society. This tax is set to discourage the consumption of products that negatively impact the environment and, more importantly, people’s health, while the revenues it generates will go towards supporting advanced services for all members of society.”
Yay to a healthier, safer society!