Authority has introduced additional taxation to promote healthy lifestyles
Ready-to-drink beverages containing at least 75 percent milk, 75 percent milk substitutes, baby formula or baby food will all be exempt from the new tax laws in the UAE.
And a statement from the Federal Tax Authority (FTA) said beverages consumed for special dietary needs and beverages consumed for medical uses would also be free from further taxation.
The UAE Cabinet last week announced the decision to expand the list of excise taxable products to include sweetened beverages, sugary drinks and electronic smoking devices, starting from January 1, 2020.
The FTA identified sweetened drinks as any product to which a source of sugar or sweetener is added and is produced as either a ready-to-drink beverage or as concentrates, gels, powders, extracts, or any other form that can be converted into a sweetened drink.
The authority also clarified that the tax on e-liquids will include all liquids used in electronic smoking devices and tools, whether or not containing nicotine or tobacco; with the same rule applying to e-cigarettes.
The additional taxation is part of the government’s efforts to promote healthy lifestyles in the UAE and combat the spread of diseases.
In a press statement issued today, the Authority asserted that the new Decision is part of the government’s continuous efforts to promote healthy lifestyles in the UAE community and curb the spread of diseases stemming from consumption of harmful goods.
As part of the first phase of implementation, the FTA has called on producers, importers, and stockpilers of sweetened drinks with added sugar to start registering for excise tax purposes through the new registration procedure, which was put in place as of August 18.