UAE excise tax to be effective from October 1
Abu Dhabi, Aug 22 (IANS/WAM) The UAE’s Ministry of Finance has said that the excise tax law will be effective from October 1 in the country.
“The tax shall impact all excise goods consumed inside the country, including all the country’s free zones and ports,” said Younis Haji Al Khouri, the Undersecretary of the Ministry of Finance, in an exclusive statement to WAM news agency.
“Commodities carried away out of the country by outbound travellers shall not be impacted by the tax, while those carried into the country shall be subject to the new law,” Al Khouri added.
The official statements come on the heels of the issuance of the Federal Decree-Law No.7 of 2017, whereby the tax shall be imposed on the “excise goods”, which along with the method of calculating the excise price are subject to a decision by the UAE Cabinet, upon the recommendation of the Finance Minister, provided that the tax rates do not exceed 200 per cent of the Excise Price.
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, the report said.
Al Khouri said the executive regulations shall determine the procedures, controls and percentage of the tax, which he explained will reach 100 per cent for tobacco and energy drinks and 50 per cent for sugary fizzy drinks.
