Tobacco trade in UAE capital is hammered by 100 percent excise tax introduced in 2017
The value of Abu Dhabi’s tobacco trade dropped by almost 85 percent in 2018 compared to the previous year.
The emirate’s trade in raw tobacco and manufactured tobacco products dropped from $111.6 million to around $16.9 million, according to a report on Emirates News Agency.
The drop has been attributed to the introduction of a 100 percent excise tax on tobacco in October 2017.
Figures from the Statistics Centre-Abu Dhabi (SCAD) show that re-exports in 2018, valued at around $15.6 million, made up 92 percent of the capital’s total trade in tobacco products.
During the same year, imports of tobacco products were estimated to be worth $680,000, while the value of exports amounted to just $653,000.
The final quarter of 2018 witnessed a decline in Abu Dhabi’s trade in tobacco and its derivatives by 53.4 percent.
Excise tax ranging from 50 percent to 100 percent was also imposed on other products deemed to be harmful to public health, including soft and energy drinks.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.