From December 1, Dh0.40 to be charged as Excise tax on individual cigarettes sold in UAE

Abu Dhabi: As of December 1, 2019, a minimum excise tax of Dh0.40 (US $0.11) must be applied per individual cigarette; and a minimum excise tax of Dh 0.10 (US$0.027) must be applied per gram of water pipe tobacco, ready-to-use tobacco or similar product, according to a decision issued the Ministry of Finance.

The Federal Tax Authority (FTA) announced it will start implementing the excise tax on electronic smoking devices and tools and sweetened beverages as of December 1 2019.

The FTA called on importers, producers and stockpilers of electronic smoking devices, liquids used in such devices and sweetened drinks to register for excise tax system as soon as possible.

The authority stressed that registering for the tax will avoid all stakeholders any fines or obstacles that may arise from late or failed registration.

Earlier, the UAE introduced the excise tax from as of October 2017 on goods, which are deemed harmful to public health or to the environment in order to reduce consumption and increase government revenues allocated to cover the costs of public services.

According to the previously enacted law, the excise tax rate ranged from 50 to 100 per cent on tobacco and its products, energy drinks and soft drinks.

Liquids used in e-cigarette includes all liquids used in electronic smoking devices and tools and the like, whether or not they contain nicotine, according to the customs codes to be specified by a ministerial decree.