The call to cut sugar in fizzy drinks could prevent 1m adults from becoming obese Image Credit: Supplied

ABU DHABI: The UAE Excise Tax Law is set to come into effect on October 1, 2017.

A senior official said that the excise tax, an indirect type of taxation, will help build a healthier and safer society — as it is set to discourage the consumption of products that negatively impact the environment and, more importantly, people's health.

As per Executive Regulations, the excise tax which kicks in next week will reach 100 percent for tobacco and energy drinks and 50 per cent for sugary fizzy drinks.

Younis Haji Al Khouri, the Undersecretary of the Ministry of Finance, explained that there are no other goods until now determined to be subject to the new tax.


Al Khouri told the official news agency WAM in August: "Commodities carried away 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." 

As per initial estimates, the tax is forecast to generate up to around Dh7 billion in annual revenues for the Federal Budget.