UAE Cabinet to include sugary drinks, smoking devices in excise taxable product

The UAE Cabinet will include sweetened beverages, sugary drinks and electronic smoking devices in the list of excise taxable product, starting 1st January 2020.

The decision has been taken to reduce consumption of unhealthy goods and modify consumers’ behaviour.

“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,” according to a statement released by the Cabinet General Secretariat.

“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 statement added.

The manufacturers will need to clearly identify the sugar content in order for consumers to make right healthy choices.

To reduce the consumption of harmful products such as electronic smoking devices, whether or not they contain nicotine or tobacco, as well as the liquids used in electronic smoking devices, that put the health of people and environment at risk, the cabinet will levy 100 percent tax.

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