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Electronic smoking devices, liquids used in related devices, and sweetened drinks will be taxed from December 1, 2019
7 October 2019
| Last updated on 9 October 2019
UAE importers, stockpilers, and producers of these products are called to register for the excise tax system immediately
The Federal Tax Authority (FTA) announced plans to introduce an excise tax on all electronic smoking devices, liquids used, and sweetened drinks, effective as of December 1, 2019. In accordance with the UAE Cabinet and Ministry of Finance, e-cigarette products will be subject to a 100% tax, while drinks containing added sugar such as soft drinks and juices will have a 50% tax.
The authority stressed that importers, producers, suppliers of such products in the UAE must register for the excise tax system as soon as possible in order to avoid any fines or legal obstacles that will arise from failing to register.
The tax was originally planned to start in 2020, however, it was pushed earlier in light of rising public health issues.
Earlier in 2017, the UAE announced a sin tax on goods that were deemed harmful to the environment and residents' health, such as tobacco and energy drinks, in order to encourage lesser consumption. This included an excise tax that ranged between 50 - 100%.
In that same year, over 1,700 products were hit with the excise tax, 60% of them being soft drinks, 26% tobacco items, and 14% on energy drinks. At the time, future goods that were expected to be added to the list were e-cigarettes and liquids used for the devices.
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