The New Excise Tax Is Starting On October 1 And It Will Have A Direct Impact On Almost Everyone

The excise tax law will come into effect from October 1, this year. 

The Ministry of Finance  announced yesterday that “the tax shall impact all excise goods consumed inside the country, including all the country’s free zones and ports,” according to Emirates News Agency Wam.ae.

The tax will be imposed on selected products, the rate will not exceed 200% of the excise price and will be subject to a decision by the Council of Ministers and on the recommendation of the Minister of Finance.

People leaving the country with products will not be effected by the new laws.

How will these taxes affect you?

Tobacco and energy drinks will be taxed up to 100%, while sugary and fizzy drinks will be subject to 50% tax.

Taxes of this type will build a healthier society by discouraging the consumption of such products according to the report, while the estimated AED 7 billion revenue generated from the tax will go towards improving society. 

From January 2018, additional products will be subject to the same tax.