ABU DHABI 30 September 2017: The new UAE Excise Tax Law shall come into play from tomorrow [October 1st, 2017].
“The tax shall impact all excise goods consumed inside the country, including all the country’s free zones and ports,” Younis Haji Al Khouri, the Undersecretary of the Ministry of Finance, told Wam.
“Commodities carried out of the country by outbound travelers shall not be impacted by the tax, while those carried into the country shall be subject to the new law,” he added.
The Excise Tax, which in itself is an indirect type of taxation, will help 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.
Al Khouri said the Executive Regulations shall determine the procedures, controls and percentage of the tax, which he explained will reach 100 percent for tobacco and energy drinks and 50 per cent for sugary fizzy drinks. He affirmed that there are no other goods until now determined to be subject to the new tax.
As per initial estimates, the tax is forecast to generate up to around Dh7 billion in annual revenues for the Federal Budget.