Tuesday 18 February 2020

UAE to impose tax on sugary drinks, e-smoking devices

UAE, August 20, 2019

The UAE Cabinet has adopted a decision to expand the list of excise taxable products to include sweetened beverages, sugary drinks and electronic smoking devices, starting January 1, 2020, said a report.

This development is part of steps taken to reduce consumption of unhealthy goods and modify consumers’ behaviour, added the Wam report.

A statement released by the Cabinet General Secretariat said a tax of 50 per cent will be levied on any product with added sugar or other sweeteners, whether in form of a beverage, liquid, concentrate, powders, extracts or any product that may be converted into a drink.

The decision also requires manufacturers to clearly identify the sugar content in order for consumers to make sensible healthy choices, it added.

“A tax of 100 percent will be also levied on electronic smoking devices, whether or not they contain nicotine or tobacco, as well as the liquids used in electronic smoking devices. The decision aims at reducing the consumption of harmful products that put the health of people and environment at risk," it continued.

"In 2017, the UAE Government started introducing excise tax on specific goods, which are typically harmful to human health or the environment," the General Secretariat of the Cabinet concluded.


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