UAE to levy 100% tax on electronic smoking devices as list of excise taxable products expanded

UAE cabinet holding a session – WAM

Abu Dhabi: The government of the United Arab Emirates (UAE) said it would expand the list of excise taxable products to include sweetened beverages, sugary drinks and electronic smoking devices.

The measure to be implemented starting January 1, 2020 aims “to reduce consumption of unhealthy goods and modify consumers’ behaviour,” the cabinet said in a statement following its session.

“The decision comes to support the UAE government’s efforts to enhance public health and prevent chronic diseases directly linked to sugar and tobacco consumption,” the statement said.

“A tax of 50 percent 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 requires manufacturers to identify clearly 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.”

In 2017, the UAE government started introducing excise tax on specific goods, which are typically harmful to human health or the environment.