1. What is the Excise tax and what is the structure of it as far as you know?
- An Excise tax is levied on specific goods which are harmful to the health of the public. Excise tax was first implemented in UAE with effect from October 1, 2017 on tobacco and tobacco products, carbonated drinks and energy drinks. From December 1, 2019, it is proposed to be levied on electronic smoking devices and tools, liquids used in electronic smoking devices and tools and sweetened drinks.
2. When will the amended UAE Excise tax come into effect?
- Excise tax on additional goods will come into effect from December 1, 2019.
3. Which sectors of the food and beverage industries is it being levied on and what is the amount per industry?
Following are the excise tax rates:
- On carbonated drinks – 50%
- On energy drinks – 100%
- On products containing tobacco – 100%
- On Electronic smoking devices and tools – 100%
- On Liquids used in electronic smoking devices and tools – 100%
- On Sweetened drinks – 50%